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Prices at The Hatter’s Inn in Queensway will be reduced by 7.5 per cent on Thursday, September 14 to mark Tax Equality Day.

This decision comes following frustrations over supermarkets paying zero VAT on food, while pubs pay 20 per cent on all food and drink.

On the day, a customer who spends £10 on food and drink will actually pay £9.25.

A Bognor pub is cutting its prices for one day only to highlight the benefit of a permanent VAT reduction in the hospitality industry. Photo: contributed

Rae Morris, The Hatter’s Inn manager, said: "It is unfair that supermarkets pay zero VAT on food, but pubs pay 20 per cent.

“Pubs have been under fantastic pressure for decades due to the tax disadvantages it has with supermarkets. The tax benefit allows supermarkets to subsidise the selling price of beer. It doesn't make sense for the hospitality industry to subsidise supermarkets.

"We urge the Chancellor to create tax equality between pubs and supermarkets."

Bognor Regis pub set to cut prices of food and drink for one day only