Retailer slams VAT proposal

Date: 24th November 2008

A major British retailer has hit out at proposals to cut the rate of VAT at today's (November 24th) pre-budget statement, according to the Financial Times.

In a report on the newspaper's website, the retailing group dismisses a planned cut in the rate of VAT from 17.5 per cent to 15 per cent as a "real headache".

Opting not to be identified, the company also believes that with many high street retailers already discounting goods, a change in VAT will make little difference this Christmas.

The group told the Financial Times: "We are coming to the month end when people get paid for the last time before Christmas.

"This means this tends to be a very busy week for retailers anyway without having to adjust all these prices."

It added that all the VAT cut meant was a lot of hard work for people, which would probably cost money to implement.

Chancellor Alistair Darling will make his pre-budget statement at 15:30 GMT this afternoon.