An Andover pub is to cut the price of all food and drink by 7.5 per cent to highlight the benefit of a permanent VAT reduction in the hospitality industry.

Prices at The John Russell Fox in High Street will be reduced for one day only, on Thursday, September 12, to mark Tax Equality Day in the Wetherspoon pub.

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

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

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.

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The pub's manager, Barry Price, said: "Customers coming to The John Russell Fox on Thursday September 12 will find the price of their food and drink is lower than normal.

"It’s 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.

"The tax benefit allows supermarkets to subsidise the selling price of beer.

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

"We urge the Chancellor to create tax equality between pubs and supermarkets."