AN ALLOA pub will slash prices next week to celebrate Tax Equality Day across the country.

The Bobbing John, managed by Wetherspoons, is set to cut the price of all food and non-alcoholic drink by 7.5 per cent on September 14.

These prices cuts come to highlight the benefit of a permanent VAT reduction in the hospitality industry.

Sarah Hill, manager for The Bobbing John, said: “Customers coming to the Bobbing John on Thursday, September 14 will find the price of their food and non-alcoholic drink is lower than normal.

“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.

“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.”

All food and drink in pubs is subject to a mandatory 20 per cent VAT by the UK Government.

Supermarkets, however, pay zero VAT on food, and use this benefit to be able to sell alcohol to customers at a discounted price.

On Tax Equality Day, a customer spending £10 on food and non-alcoholic drink will only pay £9.25 with the reduction.

The Bobbing John is located on Drysdale Street in Alloa’s town centre.