Bognor Wetherspoons to cut prices for one day only this month

The price drop,which is effective for one day only, is intended to highlight the benefits of a permanent VAT reduction for the hospitality industry.

So, a pint of beer costing £1.99 will be reduced to £1.84, for example. And a traditional English breakfast, which usually costs £3.59, will be reduced to £3.32.

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

However, the VAT is set to rise to 12.5 per cent on October 1, and the government aims to return the VAT to 20 per cent, in stages, by 2022.

Supermarkets, meanwhile, pay zero VAT on food and use that saving to sell alcohol to customers at a discounted price.

Charlotte Blanchard, manager of The Hatters Inn, 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 disadvantage it has against supermarkets.

“Customers coming to the Hatters Inn on September 23 will find the price of their food and drink is lower than normal,

However, as a result of the VAT increase to 12.5% on October 1, we will have to increase food prices.

“Therefore, on Wednesday September 29, 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.”