A local brewery has cut 20 percent VAT from all drinks at its taproom for January, in a move aimed at highlighting the growing financial pressure on pubs and hospitality businesses.

Hogs Back Brewery has launched a “No VAT in the Tap” promotion at its Tongham site, absorbing the tax itself rather than passing the cost on to customers until the end of January.

The move follows comments by Chancellor Rachel Reeves about reviewing the UK VAT threshold, as the pub and hospitality sector continues to argue that the current 20 percent rate is unsustainable.

A brewery spokesperson said: “We have to try to get the message across to the Chancellor, Rachel Reeves, that we need long-term help, not more tax.”

The offer applies across the bar and is not limited to the brewery’s own beers. It includes soft and hot drinks, as well as cask and keg options.

A pint of cask ale, including Tongham TEA (Traditional English Ale) and Surrey Nirvana Session IPA, is priced at £4. Keg beers such as Hogstar Lager and Hazy Hog Cider are £4.66 a pint.

Industry bodies have warned that pubs are facing a perfect storm of rising costs, including VAT, business rates and energy prices, with many struggling to remain viable following the withdrawal of pandemic-era support.

Managing director Miles Chesterman said: “Consumers are used to January sales, and this year the Brewery Tap is no exception. Twenty percent off the price of all drinks will make a significant difference to our loyal customers, and we hope they will show their support by visiting the Tap more.

“The additional point behind the offer is to support beleaguered British pubs that are the lynchpin of many communities. Pubs just about survived Covid, but are now buckling as a result of over-taxation.”