A POPULAR city centre chain pub is cutting all food and drink prices by 7.5 per cent for one day.

The Crown, on Broad Street, is cutting the prices on Thursday, September 14, to mark Tax Equality Day.

The Wetherspoon's pub is doing this to highlight the benefit of a permanent VAT reduction in the hospitality industry.

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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.

Richard Pugh, manager of The Crown, said: "Customers coming to The Crown on Thursday, September 14 will find the price of their food and 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."