One of Britain’s biggest pub chains will slash the prices of food and drink in its Alton and Petersfield branches today (Thursday) in a national message to the government.

Wetherspoons is cutting prices by 7.5 per cent for one day only to highlight the benefit of a permanent VAT reduction to the hospitality industry.

A £10 bill will be reduced to £9.25 on ‘Tax Equality Day’ with The Ivy House in Alton and The Red Lion in Petersfield among participating branches.

Food and drink in pubs is subject to 20 per cent VAT while supermarkets aren’t charged a penny so they’ve able to sell alcohol at discounted prices.

Ivy House manager, Lewis Brown, said pubs have been under “fantastic pressure” for decades because of the disparity.

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

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