Thousands of pubs, bars and restaurants will slash their prices today as part of a campaign to cut VAT.
Tax Equality day – which will see 15,000 establishments reduce the price of food and drink by 7.5%, has been launched to show the benefits of cutting VAT.
Jacques Borel, the man behind the campaign, has managed to get VAT cuts in a number of European countries, including France, Germany, Belgium and Finland.
“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,” he said.
“At present all food and drink in pubs is subject to 20% VAT, compared to supermarkets which benefit from a zero VAT rate.”
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 1bn of business rates support has been provided.”