A Royston pub is to cut all food and drink prices by 7.5 per cent to mark Tax Equality Day.

Prices at The Manor House in Melbourn Street - run by Wetherspoon's - will be reduced for one day only on Thursday, September 12 to highlight the benefit of a permanent VAT reduction in the hospitality industry.

For example, a customer spending £10 on food and drink will instead pay £9.25.

All food and drink in pubs is subject to 20 per cent VAT, while supermarkets pay zero VAT on food and are able to use that saving to sell alcohol at a discounted price.

The Manor House's manager, Joe Broux, said: "Customers coming to The Manor House on Thursday, September 12 will find the price of their food and drink is lower than normal.

"It’s 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.

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"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."