Harrogate pub set to cut food and drink prices for one day only

On Thursday 23rd September, the pub will cut the price of all food and drink to highlight the benefit of a permanent VAT reduction in the hospitality industry.

At present, all food and drink in pubs is subject to five per cent VAT, as a result of the VAT cut by the Chancellor in July 2020.

However, this will change on October 1st, when the VAT rate will rise to 12.5 per cent, with the government's aim of returning VAT to 20 per cent, in stages, in 2022.

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The Winter Gardens manager, Rebecca Teale, 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 fantastic pressure for decades due to the tax disadvantages it has with supermarkets.

"Customers coming to The Winter Gardens on Thursday 23rd September will find the price of their food and drink is lower than normal."

For example, a pint of beer costing £1.99 will be reduced to £1.84 and a traditional breakfast costing £3.59 will cost £3.32 on the day.

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

"Therefore, on Wednesday 29th September, 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."

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