Wetherspoons is slashing the prices of its food and drink following the government's VAT cut announcement.

Last week Chancellor Rishi Sunak confirmed that VAT would be cut from 20% to 5% for hospitality and tourism, applicable to food and non-alcoholic drinks.

Bosses at the bargain pub chain are now passing that saving on to its customers with lower prices on some of its food and drink.

The MEN reports that although the VAT cut doesn't apply to alcohol served in pubs and restaurants, some of Wetherspoons' real ales will be reduced.

The chain has also added photos of 'Dishi Rishi' to its menus, describing him as a 'legend' and 'the man who instigated tax equality between supermarkets and pubs'.

The changes will come into effect from Wednesday (July 15), with slashed prices on coffee, soft drinks, breakfasts, real ale and other menu items.

It will mean breakfasts priced from £3.49 and pints as low as £1.29.

Drinks prices from the 'Sunak Specials' menu include:

Wetherspoon chairman Tim Martin said: "Wetherspoon has campaigned for tax equality between pubs, restaurants and supermarkets for many years.

"Supermarkets pay no VAT on food sales and pubs pay 20%.

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

"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."

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