Pub in Skegness campaigns for tax equality with supermarkets

The Red Lion in Lumley Road is supporting Tax Equality Day on Thursday, September 24 - aimed at highlighting the benefit of a permanent VAT reduction in the hospitality industry.

Prices at the Wetherspoon pub on Roman Bank will be reduced for one day only.

At present all food and drink in pubs is subject to five percent VAT as a result of the VAT cut by the Chancellor on July 15.

However, this is only set to continue until January 12, 2021, when it will return to 20 per cent.

By comparison supermarkets 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 price.

The pub's manager, Abbey Gibb, said: "We are proud to support the campaign to reduce the level of VAT within the hospitality industry.

"Customers coming to The Red Lion on Thursday September 24, will find the price of their food and drink is lower than normal.

"Pubs have been under fantastic pressure for decades due to the tax disadvantages we have with the supermarkets.

"We're very grateful to very grateful to the Chancellor for reducing the tax disparity between supermarkets and pubs to five per cent.

"We are urging the Chancellor to create tax equality between pubs and supermarkets by making the current VAT regime for pub food and soft drinks permanent."