A WINCHESTER pub is to cut the price of all food and drink by 7.5 per cent next Wednesday.

The Old Gaol House, in Jewry Street, is backing national tax equality day – which aims to highlight the benefit of a VAT reduction in the hospitality industry.

Prices at the Wetherspoon pub will be reduced for one day only, in order to show the benefits of a VAT reduction.

At present all food and drink in pubs is subject to 20 per cent VAT, compared to supermarkets which benefit from a zero VAT rate on all food. As a result, supermarkets are able to use that saving to sell alcohol at a discounted rate.

The pub’s manager, Hannah Barrett, said: “We are proud to support the campaign to reduce the level of VAT within the pub industry.”