J D Wetherspoon is slashing food and drink prices for one day only to highlight tax burden

It means a customer spending £10 on food and drinks would pay £9.25 instead.

Prices in Scotland will be cut on food and non-alcoholic drinks, in line with Scottish licensing laws.

JD Wetherspoon founder and chairman Tim Martin said: “The biggest threat to the hospitality industry is the vast disparity in tax treatment among pubs, restaurants and supermarkets.

“Supermarkets pay zero VAT in respect of food sales, whereas pubs and restaurants pay 20 per cent.

“This tax benefit allows supermarkets to subsidise the selling price of beer.

“Pubs have been under fantastic pressure for decades because of the tax disadvantages which they have with supermarkets.”

The one-day price cut marks Wetherspoon’s “Tax Equality Day”, and aims to highlight the benefit that a permanent VAT reduction would have on pubs and restaurants across the UK.

Mr Martin argued the disparity in tax rules means the hospitality industry is subsiding supermarkets.

He said: “We urge the Chancellor to create tax equality between pubs and supermarkets.”

Mr Martin has previously argued that the lower price of beer in supermarkets has put some customers off getting a pint at their local pub.

LATEST DEVELOPMENTS:

• Asda is offering customers the chance to get up to £100 off their shopping
• Santander launches ‘top of market’ easy access savings account
• State pension 'danger' alert as a third of people at risk of delay

Food and drinks in pubs are subject to 20 per cent VAT.

Supermarkets pay zero VAT on food and Wetherspoon claims they are able to use that saving to sell alcohol to customers at a discounted price.

As of July, Wetherspoon runs 827 pubs in the UK and Ireland.

GB News has contacted HM Treasury asking for comment.