JD Wetherspoon has declared it will cut the price of food and drink by 7.5 per cent on Thursday to highlight the benefit of a permanent reduction in value-added tax for the hospitality sector.

The move comes as hospitality campaigners step up calls for a VAT cut to ease rising cost pressure on the industry, which is being hit by rampant inflation and spiralling costs amid the continuing energy crisis.

Wetherspoon, which has around 850 pubs in the UK, will reduce VAT for one day for one day to mark Tax Equality Day.

In Scotland prices will be reduced on meals on meals and non-alcoholic drinks only because of licensing restrictions.

READ MORE: Warning Scottish hospitality will 'go dark' this Christmas

At present, food and drink is subject to a VAT rate of 20% in hospitality outlets such as hotels, bars and restaurants.

The tax was reduced earlier in the pandemic, initially to 5% before a spell at 12%, in moves that industry campaigners say were the most effective brought in by the UK Government to help hospitality businesses during the Covid crisis.

Food is zero VAT rated in supermarkets.

Wetherspoon chairman Tim Martin said: "Taxes should be fair and equitable. It doesn’t make sense for the hospitality industry to subsidise supermarkets.

“However, it is unfair that supermarkets pay zero VAT on food, but pubs and restaurants pay 20%.

“Pubs have been under fantastic pressure for decades due to the tax disadvantages that they have  with supermarkets. Customers in our pubs will find the price of their food and drink will be lower than normal on Tax Equality Day.

“We applauded the Chancellor when he reduced the level of VAT to five per cent and then to 12.5 per cent (for food and drink served in pubs) and urge the Chancellor once again to reduce VAT, thereby creating tax equality between pubs and supermarkets.

“He should also note that the main impact of tax inequality is on high streets and town and city centres, which heavily depend on a diversity of prosperous hospitality businesses for economic, social and employment success.

“Government does best when it does not discriminate among various types of business selling the same products.”

The intervention by Wetherspoon comes after Kate Nicholls, chief executive of UKHospitality, warned parts of the Scottish tourism and hospitality industry will "go dark" this Christmas and New Year.

In an exclusive interview with The Herald on Saturday, Ms Nicholls said operators in Scotland are planning to close this winter because they can't afford the cost of energy. Ms Nicholls urged the UK Government to provide details of the six-month energy support package for business and "focused support for vulnerable industries" announced by Prime Minister Liz Truss on Thursday as quickly as possible.