Wetherspoons says it faces a price hike for pub meals by around 40p if a VAT cut for the hospitality industry is not continued.

It had been decided that tax was cut on food sold in pubs from 20% to 5% during the pandemic to help struggling businesses.

However, the tax is set to increase incrementally over the next year rising to 12.5% by September.

The owners of the Paddle Steamer on Largs seafront have it it out - saying it would "make the entire hospitality industry less competitive".

A spokesperson said: ""It is an important principle of taxation that taxes should be fair and equitable.

"One area of undoubted unfairness, which creates economic distortions, relates to VAT. Supermarkets pay zero VAT on food, but pubs and restaurants pay 20%, in normal circumstances."

The owners stated that successive governments had "robbed the poor to help the rich", and highlighted the much higher profits of supermarkets.

"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."

Wetherspoons, who say they will be forced to introduce price increases in September as a result, say they that they have experienced a downturn since opening.

Sales declined by 14.6% between 17 May to 4 July, when pubs were fully open again. The firm expects to make a loss for the year ending 25 July 2021.