Pubs and restaurants cut prices in VAT protest
Thousands of pubs and restaurants are dropping their prices by 7.5% on Wednesday in protest at current tax conditions.
The campaign, called "Tax parity day", has been organised by the lobby group of French businessman Jacques Borel.
Currently customers pay 20% VAT on food consumed in pubs and restaurants.
Campaigners say a VAT cut from 20% to the government's reduced rate of 5%, would generate an extra £1.5bn in taxes in just three years and 600,000 jobs.
However, the government disputes the figures.
"We do not accept the industry's case for a VAT rate cut for restaurants and catering," a Treasury spokesperson said.
"A 5% reduced rate on catering services is estimated to cost around £9bn to the Exchequer."
There are three rates of VAT: the standard rate of 20%, the reduced rate of 5% and the zero rate.
Most food is zero-rated but food sold in pubs and restaurants has to include a VAT charge of 20%.
Campaigners argue that this is unfair, and VAT should be cut to the reduced rate of 5% - which at the moment mainly applies to domestic energy supplies.
(continued - didn't fully understand the logic but sounds like Wednesday should be fun?)
