For one day only the price of VAT is being slashed at thousands of UK pubs and restaurants.
More than 40 UK pub and restaurant brands are slashing VAT on Wednesday (25th September) in an attempt to show the Government how much a nationwide cut would boost the economy.
For one day prices will be lowered by 7.5% in thousands of food and drink establishments across the nation including Pret a Manger, Subway and J.D. Wetherspoons.
The brands involved are part of the ‘VAT Club’ organised by restaurant owner Jacques Borel.
Low-VAT Wednesday
Similar campaigns against the high price of VAT have been run by Borel in Germany, France and Belgium.
In the UK, supermarkets pay 0% on most food but pubs and restaurants pay 20%, which Borel says means fewer people choose to eat out, and therefore fewer jobs are being created in this industry.
The main aim of Wednesday's campaign is to urge the Government to cut the UK VAT level to 5% from 20%. Borel says with a cut in VAT, prices would fall and this would in turn would stimulate demand and push up profits. It would also make up the shortfall in Government revenue.
[SPOTLIGHT]If a cut to 5% was brought in, Borel says some companies would reduce prices by the entire amount (15%) and others wouldn’t, instead keeping some of the savings for themselves. So the 7.5% mark is meant to show an average of the amount retailers in the leisure industry would reduce VAT by.
There are 40 brands taking place in the price cut. They includes 15,000 different outlets belonging to brands such as Fuller’s, TGI Fridays, Prezzo, Black Sheep and Theakston. A full list can be found on the VAT Club website.
Lower prices
Although Borel has been successful in other countries in reducing VAT for those in the restaurant sector, for example in Brussels in 2009, it’s unclear if this campaign will have the same effect.
But with almost 10% off the price of your bill, even if it doesn’t it’s still an excuse to save some money if you’re going out for midweek drinks or dinner.
For more middle of the week bargains and freebies see Midweek Moneysavers.