The Earl of Dalkeith in Kettering will slash its prices by 7.5 per cent on Wednesday (September 20) for Tax Equality Day.
Prices at the Wetherspoon pub in Dalkeith Place will be reduced for one day only to show the benefits of a VAT reduction.
At present all food and drink in pubs is subject to 20 per cent VAT, compared to supermarkets which benefit from a zero VAT rate on all food.
As a result, supermarkets are able to use that saving to sell alcohol at a discounted rate.
The pub’s manager, Robert Keen, said: “We are proud to support the campaign to reduce the level of VAT within the pub industry.
“Customers coming to the pub on Wednesday, September 20, will find the price of their food and drink is lower than normal.
“We are keen to highlight the amount customers could save if VAT in pubs was lowered permanently.
“So, for example, the total price of a meal and drinks for an individual would be reduced from £10 to £9.25 on Tax Equality Day.
“A reduction in the level of VAT on a long-term basis will generate growth and create jobs in the important leisure and hospitality sector and help the high street of which pubs are an integral part.”