PUBS in Brighton and Hove are set to slash the price of all food and drink this week to mark Tax Equality Day.

Four Wetherspoon sites in the city will be cutting prices by 7.5 per cent on Thursday to highlight the benefit of a permanent VAT reduction in the hospitality industry.

Prices at The Bright Helm in West Street, The Post and Telegraph in North Street and The West Quay in Brighton Marina Village (all in Brighton), as well as The Cliftonville Inn in George Street, Hove will be reduced.

So, for example, a customer spending £10 on food and drink will only pay £9.25 on Tax Equality Day.

All food and drink in pubs is subject to 20 per cent VAT.

The Argus: The Post & Telegraph, Brighton. Photo: Google MapsThe Post & Telegraph, Brighton. Photo: Google Maps (Image: Google Maps)

By comparison, supermarkets pay zero VAT on food, and are able to use that saving to sell alcohol to its customers at a discounted price.

The Post and Telegraph manager Matthew Scott said: "It is unfair that supermarkets pay zero VAT on food, but pubs pay 20 per cent.

"Pubs have been under fantastic pressure for decades due to the tax disadvantages it has with supermarkets.

"It doesn't make sense for the hospitality industry to subsidise supermarkets.

"Customers coming to The Post and Telegraph on Thursday will find the price of their food and drink is lower than normal.”

Wetherspoon chairman Tim Martin has urged the new Chancellor Kwasi Kwarteng to reduce the rate of VAT again to help pubs fight against big supermarket chains.

The Argus: Tim Martin. Photo: PATim Martin. Photo: PA (Image: Newsquest)

Mr Martin said: “Taxes should be fair and equitable.

“We applauded the Chancellor when he reduced the level of VAT to five per cent and then to 12.5 per cent (for food and drink served in pubs) and urge the Chancellor once again to reduce VAT, thereby creating tax equality between pubs and supermarkets.

“He should also note that the main impact of tax inequality is on high streets and town and city centres, which heavily depend on a diversity of prosperous hospitality businesses for economic, social and employment success.

“Government does best when it does not discriminate among various types of businesses selling the same products.”