Two pubs in Harrogate and Knaresborough pubs are reducing the cost of food and drink for one day only to highlight what they say would be the benefits of a permanent cut in VAT for the hospitality industry.

The Winter Gardens and The Crown Inn will reduce all food and drink prices by 7.5 per cent on Thursday, September 17, as part of Tax Equality Day.

The campaign aims to demonstrate the impact a lower rate of VAT could have for both businesses and customers, with a £10 bill falling to £9.25 for the day.

Currently, all food and drink sold in pubs is subject to 20 per cent VAT.

The Winter Gardens in Harrogate and The Crown Inn in Knaresborough will reduce all food and drink prices by 7.5 per cent on Thursday, September 17, as part of Tax Equality Day

placeholder image — The Winter Gardens in Harrogate and The Crown Inn in Knaresborough will reduce all food and drink prices by 7.5 per cent on Thursday, September 17, as part of Tax Equality Day

Supporters of the campaign argue that supermarkets have an advantage because food sold in stores is zero-rated for VAT, allowing retailers to offer alcohol at lower prices.

Vanessa Gill, Manager of The Crown Inn, said: ““We are proud to support the campaign to reduce the level of VAT within the hospitality industry.

“Customers coming to the pub on Thursday 17 September will find the price of their food and drink is lower than normal.

“We are keen to highlight the amount customers could save if VAT in pubs was lowered permanently.

“A reduction in the level of VAT on a long-term basis will generate growth and create jobs in the important hospitality sector and help the high street, of which pubs are an integral part.”