Thousands of pubs and restaurants dropped their prices by 7.5% for a day last week as part of a planned protest over high taxes in the hospitality industry.

The campaign, called "Tax parity day", was organised by the lobby group of French businessman Jacques Borel, the VAT Club.

Campaigners argue that a cut in VAT from 20% to the government's reduced rate of 5%, would generate an extra £1.5bn in taxes in just three years and 600,000 jobs in pubs, bars, restaurants, catering companies and hotels as well as better training and better salaries across the hospitality industry.

The VAT Club said: “A VAT cut for the sector would not only provide a boost for the cash strapped public via lower prices but would also support more young people into work and help businesses invest in staff training and premises.”

Companies taking part, including Pizza Hut and JD Wetherspoon, are thought to have received an extra 10% increase in sales on the day.

Tim Martin, chairman of the JD Wetherspoon pub chain, told BBC Radio 5 live, "Our point is that not everyone pays VAT in the same way pubs do... supermarkets can subsidise their sales of alcohol; each pint that's sold in a pub generates far more tax than it does in a supermarket."