Pubs and restaurants across the country are reducing their prices today as part of tax parity day.

The initiative, organised by the VAT club spearheaded by Jacques Borel, is designed to encourage the Treasury to drop VAT for hospitality from 20%.

As many as 15,000 restaurant and pub businesses across 44 firms are expected to take part in the day, with the majority lowering prices by 7.5%.

Borel and his fellow campaigners hope that the day will highlight what they see as the unfairness of the current system, where supermarkets pay 0% VAT on food.

He told Caterer and Hotelkeeper that at least 10,000 businesses, 40% of which are estimated to be restaurants and another 60% of which are pubs, were ready to take part in Tax Parity Day, including managed pub giant JD Wetherspoon.

The businesses are cutting prices by 7.5% because it equates to passing on around 60% of the tax cut they are campaigning for. The other 40% would be used for wider benefits such as higher wages and investment in facilities.

Kent chef-restaurateur backs Tax Parity Day campaign with 7.5% price cut in menu prices >>

Cut VAT on food and create 670,000 jobs, Borel claims >>