Wetherspoons has released a new menu which includes half price drinks and pints for £1.29.

The menu launch coincides with the VAT cut coming into place this Wednesday, July 15 following the Chancellor’s decision to slash VAT on food, coffee and soft drinks from 20% to 5% to "get the sector moving".

JD Wetherspoons has confirmed although the Government scheme only covers food and soft drinks, its pubs will offer a new menu with reduced prices on real ale, coffee, fizzy drinks, breakfasts, burgers and pizzas, reports MirrorOnline.

This will include a pint of Ruddles Bitter for half price at £1.29, while a pint of Doom Bar will fall to £1.79.

Abbot Ale and guest beers will drop to £1.99 at 764 of its pubs for a limited time only.

Lavazza coffee and tea will be reduced to £1.29 at the 764 pubs and soft drinks will start at £1.69.

Breakfasts will be reduced to £3.49 while pizzas and burgers, including a soft drink will start at £4.99, around 60% less than the usual price.

All Wetherspoon pubs including those in town and city centres, airports and stations will see prices reduced for these products.

Tim Martin, Wetherspoon founder and chairman, said: "Wetherspoon will invest all the proceeds of the VAT reduction in lower prices, spread across both bar and food products, with the biggest reductions on real ale.

Supermarkets pay no VAT on food sales and pubs pay 20 per cent.

"Supermarkets pay about two pence per pint of business rates and pubs pay about 20 pence.

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"These tax differences have helped supermarkets to subsidise their selling prices of beer, wine and spirits, enabling them to capture about half of pubs’ beer sales, for example, in the past forty years.

"A VAT reduction will help pubs and restaurants reverse this trend – creating more jobs, helping high streets and eventually generating more tax income for the government.

"Not every UK hospitality business will be able to reduce prices immediately.

“Some will need to retain the benefit of lower VAT just to stay in business. Others may need to invest in upgrading their premises.

"However, lower VAT and tax equality will eventually lead to lower prices, more employment, busier high streets and more taxes for the government."

The standard rate of VAT in the UK is 20%, however it's about to be slashed on hotels, food and days out to 5% for six months.