What is Tax Equality Day?
Once again, Wetherspoons chairman Sir Tim Martin have announced they will be celebrating their annual Tax Equality Day. On this day, Wetherspoons pubs cut the price of all food and drinks by 7.5% – highlighting the need for a permanent VAT reduction across the nightlife and hospitality sectors.
Tax Equality Day 2026 will take pace on Thursday 17th September at Wetherspoons. But it’s not just Wetherspoons, licensed venues up and down the country will be supporting the action, including some bars in sports clubs and social clubs.
Hence a drink costing £5, will instead cost the customer £4.63, saving the customer 37p. A food item costing £10, will instead cost the customer £9.25, saving 75p. This is not a temporary tac cut, this is an artificial simulation by the businesses, lowering their prices to demonstrate the savings that can be passed on to customers.
The intention behind Tax Equality day is also to show the disparity with supermarkets, who are not required to pay VAT, and therefore offer cheaper drink prices on average.
Statement from Wetherspoons:
Wetherspoon’s founder and chairman, Sir Tim Martin, said:
“The biggest threat to the hospitality industry is the vast disparity in tax treatment among pubs, restaurants and supermarkets. Supermarkets pay zero VAT in respect of food sales, whereas pubs, bars and restaurants pay 20 per cent. This tax benefit allows supermarkets to subsidise the selling price of beer.
“Pubs have been under fantastic pressure for decades, because of the tax disadvantages which they have with supermarkets. It doesn’t make sense for the hospitality industry to subsidise supermarkets.”
“A VAT cut to 12.5 per cent is needed to ensure that pubs, bars and restaurants do not continue to close, but instead thrive, invest and create new jobs… We call on the chancellor to create tax equality between the hospitality industry and supermarkets.”
Would it be beneficial for clubs to be involved in Tax Equality Day?
At Club Insure, we debate the pros and cons of taking part in Tax Equality Day –
Pros of taking part in Tax Equality Day:
- Show support for the project and the VAT cut.
- Highlight the issue for your members, that Vat is a national issue, and raise awareness.
- A price drop may encourage more sales on the day
Potential cons of taking part in Tax Equality Day:
- Revenue loss initially for your business, a 7.5% cut is hefty over a number of sales.
- Setting expectations from patrons around lower prices, which could upset patrons when they go back up.
- Not all your members may agree on a VAT cut for hospitality, it is a heavily politicised issue.
Clubs who go through with supporting Tax Equality Day must ensure clear messaging and communication. Also, advertising a day of price drops will entice visitors to your bar, whether that’s on Thursday or if you choose to run the event on a busier day such as the weekend following the 17th September.
Highlight the benefits of the day for the industry, and consider making this action a regular occurrence if it proves successful for your club.
For more guidance on Tax Equality Day, or on how to properly risk manage your bar area before an event, contact Club Insure.