On Thursday 12 September we are to cutting the price of all food and drinks by 7.5%. This is to highlight the benefit of a permanent VAT reduction in the hospitality industry.

All food and drinks in pubs are subject to 20% VAT.
In comparison, supermarkets pay zero VAT on food and are able to use that saving to sell alcohol to customers at a discounted price.

The hospitality industry is unfairly treated when it comes to VAT. We buy sausages from the local butcher, no VAT, and bread from the local baker, also no VAT. We make and sell a sausage sandwich and, because we put it on a plate, we have to charge an extra 20%. This unfair treatment is highlighted when you buy a pack of mini-chedders. Tesco, £1.80 (no VAT) and in the Prince £2.20 (with VAT).

Drop by on Thursday 12th September and you’ll find you bill reduced by 7.5% to highlight the need for a perminant reduction in VAT for food sold in the hospitality industry.