The British Retail Consortium warned the government that any VAT increase "would have negative impacts on retailing and the wider economy." The British Retail Consortium also warned that VAT should not be extended to exempted items such as food, books and children's clothing as this "would hit the most vulnerable members of society the hardest".
The Financial Times reported on the 7th June 2010 however, that many senior managers privately concede the rise in VAT as inevitable and are merely seeking to delay its introduction.
Senior managers from some of Britain's biggest chains told the Financial Times that they were resigned to an increase and were lobbying instead to postpone the rise until early next year. "It is more a case of arguing how it goes up and when it goes up," said one retailer.
Staging the VAT rise to give business time to prepare for the change is more important according to senior Conservative party sources quoted by the Financial Times. "VAT could be raised in January 2011, with a further rise coming in January 2012 – this would show retailers that the measure was not just about the short-term."
Here at Greengates Builders Merchants Accrington, Lancashire we are hoping that a rise in VAT can be avoided as we also feel this could have a negative impact on businesses and the wider economy. At Greengates Builders Merchants we are all interested to hear the government’s plans to rebuild the economy and to see what this will entail for everyone.