A KEIGHLEY pub is cutting the price of all its food and drink by 7.5 per cent for a day as part of a national campaign.

The Livery Rooms, the Wetherspoon pub in North Street, is reducing prices on Thursday September 23 to mark Tax Equality Day.

The aim of the initiative is to highlight how the hospitality industry could benefit if VAT was permanently reduced.

Currently food and drink in pubs is subject to five per cent VAT, following a cut by the Chancellor in July last year to provide help during the pandemic. But the figure will rise to 12.5 per cent on October 1 and is set to return to 20 per cent, in stages, next year.

Wetherspoon says that by contrast, supermarkets pay zero VAT on food – and so are able to use that saving to sell alcohol to its customers at discounted prices.

Sophie Turner, manager at The Livery Rooms, said: “It is unfair that supermarkets pay zero VAT on food, but pubs and restaurants – in normal circumstances –pay 20 per cent.

“Pubs have been under massive pressure for decades due to the tax disadvantages they have with supermarkets.

“Customers coming to The Livery Rooms next Thursday, September 23, will find the price of their food and drink is lower than normal.

“However, as a result of the VAT increase to 12.5 per cent on October 1, we will have to increase food prices.

“Therefore, on Wednesday September 29, we will increase prices on our meals by 50p.

“We urge the Chancellor to create tax equality between pubs and supermarkets by making the current VAT regime for pubs permanent.”