Wetherspoons is set to slash prices on all of its food and drink for one day only in a bid to convince the Government to lower booze taxes.

The pub chain is well known for its cheap pints but it is knocking off a further 7.5 per cent as part of the protest.

It is one of thousands of businesses across Britain supporting Tax Equality Day on Wednesday September 20th.

Under UK law pubs and restaurants are forced to charge 20 per cent VAT on food and drink - but supermarkets do not have to do the same.

Wetherspoons is slashing prices at its hundreds of outlets across the country - for one day only in a protest against taxes

This allows Tesco and its rivals to sell alcohol at a much lower price, encouraging drinkers to stay at home to socialise with friends rather than go out.

Wetherspoons - which has just under 1,000 outlets across the country - wants the Government to permanently lower the tax.

The company's chairman Tim Martin, said: 'We are proud to support the campaign to reduce the level of VAT in the pub industry.

'On Tax Equality Day, customers in our pubs will find the price of their drinks and food to be lower than normal. We are keen to highlight the amount which customers would save, if VAT in pubs were lowered permanently.

'So, for example, the total price of a meal and drinks, for a customer, would be reduced from £10 to £9.25 on Tax Equality Day.

The company's chairman Tim Martin, said: 'It is a win-win situation for the government and our industry'

'A reduction in the level of VAT, on a long-term basis, will generate growth and create jobs in the important leisure and hospitality sector.

'Creating tax equality among pubs, restaurants and supermarkets will fulfil many government objectives.

'It will create more jobs and raise the amount of taxes which the government receives, since pubs and restaurants pay more taxes and create more jobs than supermarkets do.

'It is a win-win situation for the government and our industry.'