A NORTHWICH pub is slashing the price of its food and drink for one day only to highlight the differences in tax between supermarkets and hospitality establishments.

The Penny Black will be reducing its prices by 7.5 per cent on Thursday, September 12, to mark Tax Equality Day.

This means a customer at the Wetherspoon pub, in Witton Street, spending £10 on a food and drink that day will pay £9.25 instead.

All food and drink in pubs is subject to 20 per cent VAT, whereas supermarkets pay zero VAT on food.

Penny Black manager Shaun Pearce says this is 'unfair' as it allows supermarkets to use that saving to sell alcohol to customers at a discounted price.

He said: "Customers coming to The Penny Black on Thursday, September 12, will find the price of their food and drink is lower than normal.

"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 they have 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."