Timing of 17.5 per cent VAT resumption 'insane'

Date: 18th June 2009

The government's proposal to re-hike VAT to 17.5 per cent on New Years Eve has been slammed as "insane".

Sir Stuart Rose, executive chairman of Marks & Spencer, suggested the 2.5 per cent increase of VAT at the turn of the year would cause Christmas chaos.

He said: "Increasing VAT on New Year's Eve is an insane time. If the government had any sense, they would delay it for a month.

"There needs to be a conversation with us about the timing of this. The tax rise is at the worst possible time — right in the middle of the sales period."

Sir Stuart added that the administration involved at such a busy period would also be unwelcome.

The news of the government's planned 17.5 per cent VAT resumption comes after it faced criticism over a planned levy of £6 on every house in Britain to take super-fast internet connection nationwide.