UK: Pubs reduce VAT in tax cut campaign

Pubs set to take 'VAT' equivalent off beer for a day

Pubs set to take 'VAT' equivalent off beer for a day - Credit: Getty Images

More than 15,000 pubs, bars and restaurants across the UK will cut the price of food and drink by 7.5% today as part of a campaign to reduce VAT.

Campaigner Jacques Borel called on the hospitality industry to make Tax Equality Day their busiest day of the year to highlight the benefit of a VAT reduction.

Prices will be reduced for one day to show the benefits to consumers of a VAT cut from 20%.

Mr Borel has achieved VAT cuts in a number of European countries, including France, Germany, Belgium and Finland.

He said: “I am confident that Tax Equality Day will be a great success and that the price reductions will be welcomed by customers.

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“At present all food and drink in pubs is subject to 20% VAT, compared to supermarkets which benefit from a zero VAT rate.

“Our message is clear - a reduction in the level of VAT on a long-term basis will generate growth and create jobs in the important leisure and hospitality sector.”

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A Treasury spokesperson said: “We are committed to supporting the leisure and hospitality industry and have cut the tax on a typical pint of beer by one penny at Budget 2013 and by a further one penny at Budget 2014, making a pint of beer 8p cheaper than under inherited duty plans.

“We are also providing additional support to businesses in a number of ways. For example, from April 2014 businesses and charities have been able to benefit from up to £2,000 off their employer national insurance contributions bill and over £1 billion of business rates support has been provided.”

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