JD Wetherspoon is set to cut the prices of all food and drinks this month as part of 'Tax Equity Day'.

Food and drink prices at Wetherspoon pubs across the UK will be cut by 7.5 per cent for one day only this month to "highlight the benefit of a permanent VAT reduction in the hospitality industry".

All food and drinks in pubs are subject to 20 per cent VAT, a Wetherspoon spokesperson explained.

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

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Wetherspoon’s founder and chairman, Tim Martin, added: “The biggest threat to the hospitality industry is the vast disparity in tax treatment among pubs, restaurants and supermarkets.

“Supermarkets pay zero VAT in respect of food sales, whereas pubs, bars and restaurants pay 20 per cent.

“This tax benefit allows supermarkets to subsidise the selling price of beer.

“Pubs have been under fantastic pressure for decades, because of the tax disadvantages which they have with supermarkets.

“It doesn’t make sense for the hospitality industry to subsidise supermarkets.

“A VAT cut to 12.5 per cent is needed to ensure that pubs, bars and restaurants do not continue to close, but instead thrive, invest and create new jobs.

“We call on the chancellor to create tax equality between the hospitality industry and supermarkets.”

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When will JD Wetherspoon be cutting the price of food and drinks this month?

Prices of all food and drinks in Wetherspoon pubs across the UK will be cut by 7.5% on Thursday, September 12.

So for example if a customer is spending £10 on food and drinks, they will only pay £9.25 on Tax Equity Day.

Wetherspoon's in Scotland will only have this discount applied to food and non-alcoholic drinks, due to Scottish licensing laws.