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Pubs drop prices in VAT protest

Pubs and restaurants are set to drop their prices today as part of a VAT protest. The chains and breweries are taking part in 'tax parity day' in a bid to show the Treasury that a drop in VAT would lead to increased sales.

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Lukewarm reception to pub grub protest

A price reduction of 7.5 percent in pubs and restaurants would not encourage most people to dine out more, according to a survey on the ITV News Facebook page.

Most respondents believed the price cut was too small to make a difference, such as Caroline Caunt who said:

I would hardly say that a £1.50 reduction on a £20 main course would encourage me to dine out....!

– Caroline Caunt

Christine Wood disputed claims from protest organisers that a VAT reduction would boost the economy:

Lower prices wouldn't create more jobs, the few staff they employ now would have to work harder, that's how it works these days.

– Christine Wood

Steve Clarke was also pessimistic about the wider benefits of lower VAT for the hospitality sector:

If they dropped VAT for food outlets the lost money would have to be made up somehow, and guess who would end up footing the bill... So we'd end up no better off and the food companies wouldn't get any more business.

– Steve Clarke

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