Retailers demand delay in VAT increase

Date: 9th March 2009

British retailers have called on the government to delay the planned increase in VAT by one month.

At last year's pre-budget address, Chancellor Alistair Darling announced the 13-month 2.5 point cut in the rate of VAT in a bid to encourage consumer spending.

Now, the British Retail Consortium (BRC) has called for an extension to the December 31st deadline as it looks to protect the industry's jobs.

Director general of the BRC, Stephen Robertson, said: "Retailers don't want handouts, but we can't cope with increasing government-imposed handicaps.

"Retailing is at the heart of every local community, providing one in nine UK jobs."

Mr Robertson added that the government must work alongside retailers to "protect these jobs and promote new opportunities".

A recent investigation by the Federation of Small Businesses found that 97 per cent of all firms felt the VAT cut had made no impact on their trade.