There is good news for pubgoers this week as Wetherspoon has announced it will be slashing the prices of food and drinks across its pubs this week.

For one day only prices in Wetherspoon pubs will be reduced by 7.5 per cent in a bid to highlight the benefit of a permanent VAT reductions in the hospitality industry.

Prices at the pubs will be reduced on Thursday, September 14, to mark Tax Equality Day - in Scotland, prices will be reduced on food and non-alcoholic drinks, in line with Scottish licensing laws.

For example, a customer spending £10 on food and drinks will pay only £9.25 on Tax Equality Day.

Exmouth Journal: JD Wetherspoon customers can make a saving on their food and drinks on ThursdayJD Wetherspoon customers can make a saving on their food and drinks on Thursday (Image: Getty)

All food and drinks in pubs are 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 customers at a discounted price.

Wetherspoon’s founder and chairman, Tim Martin, said: “The biggest threat to the hospitality industry is the vast disparity in tax treatment among pubs, restaurants and supermarkets.

“Supermarkets pay zero VAT in respect of food sales, whereas pubs and restaurants pay 20 per cent.

“This tax benefit allows supermarkets to subsidise the selling price of beer.

“Pubs have been under fantastic pressure for decades, because of the tax disadvantages which they have with supermarkets.

“It doesn’t make sense for the hospitality industry to subsidise supermarkets.

“Customers coming to Wetherspoon’s pubs on Thursday 14 September will find the price of their food and drinks to be lower than normal.

“We urge the chancellor to create tax equality between pubs and supermarkets.”

Stonegate to introduce price hikes to pubs

Meanwhile customers at Stonegate venues will be made aware of the price hikes as the brand confirmed there would be notices in pubs.

Stonegate is the UK's biggest pub chain with over 4,500 venues as the brand shared that 800 will now have higher prices on items during weekends and evenings.

Previously, Stonegate upped prices during the football World Cup, where an extra 50p was added to pints during England matches.

Discussing the price hike, a Stonegate spokesperson told the BBC: "Like all retail businesses, we regularly review pricing to manage costs but also to ensure we offer great value for money to our guests."

Adding: "This flexibility may mean that on occasions pricing may marginally increase in selective pubs and bars due to the increased cost demands on the business with additional staffing or licensing requirements such as additional door team members."

Whilst products may be more expensive at peak times, Stonegate also shared that it means they can offer better deals.

Within less busy times they can offer discounts like happy hour, two-for-one cocktails, discounts on food and drinks and more.