A NORTHWICH pub will cut the price of all food and drink for one day only.

Wetherspoons has announced it is slashing prices by 7.5 per cent at The Penny Black on Witton Street.

The price reductions are being brought in on Thursday (September 14) to mark Tax Equality Day with the aim of highlighting the benefit of a permanent VAT reduction in the hospitality industry.

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 saving to sell alcohol to its customers at a discounted price.

The pub's manager, Vicky Willocks, said: "Customers coming to The Penny Black on Thursday 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."