For one day only the price of food and drink be slashed in Wetherspoons.

Pubs will cut the cost of items by 7.5 per-cent to highlight the benefit of permanent VAT reduction in the hospitality industry.

Wetherspoons founder Tim Martin said the hospitality industry has been under pressure for years and the price reduction will be in place tomorrow (Thursday, September 12) to mark Tax Equality Day.

So, 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.

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

Mr Martin said: "It’s 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."