VAT change is 'fair'

Date: 28th January 2010

The increase in VAT, which saw the tax revert from 15 per cent to 17.5 per cent on January 1st, is considered "fair" by most Britons, new research has shown.

In a recent study by accountancy software firm Accountz, 61 per cent of respondents described Alistair Darling's decision as "fair".

Despite the sentiment, the report also revealed that more than half (52 per cent) of consumers intend to cut back their spending in 2010.

According to the data, just four per cent of those asked plan on increasing the amount of money they part with over the next 12 months.

Quentin Pain, founder of Accountz, said: "This survey highlights the financial insecurity that is rife amongst Brits at this current moment in time.

"The VAT increase is a major bone of contention for both retailers and consumers. Whilst it was inevitable, it is quite likely that it will impact heavily on consumer spending at a time when the high street is already in disarray and customers are staying away."