Wetherspoon founder and chairman Tim Martin has called on the government to reduce the level of VAT in respect of food served in pubs, restaurants and cafes – to help curb inflation.
Mr Martin said:
“The government’s decision to return VAT to 20 per cent in April has affected the entire hospitality industry and is a contributory factor in the rise in inflation.
“It does not make economic sense that food bought in pubs, restaurants and cafes attracts VAT of 20 per cent, when food is VAT-free in supermarkets.
“The argument is even more valid now as the increase in VAT from 12 per cent back to 20 per cent in April has been one of the factors in the increased rate of inflation.
“The government should reduce VAT from the current 20 per cent in the hospitality industry and as well as benefitting businesses and customers, it will, I believe help in lowering inflation in the months to come.