VAT changes 'complete nonsense'

Date: 16th September 2009

Small businesses operating in the UK retail sector are likely to suffer as they deal with a planned increase in the rate of VAT at the busiest time of year.

That is according to the chief executive of Debenhams, Rob Templeman, who has argued that the government's decision to stick by plans to push VAT back up to the old level of 17.5 per cent on New Year's Day will prove highly disruptive.

"It is a complete nonsense in terms of timing and we have voiced our opinion. It is peak trading time," he told the Telegraph.

"Every retailer has voiced their concern about it."

Mr Templeman added that the move should be postponed until at least the end of the post-Christmas sale season, so as to make life easier for retailers of all sizes.

Earlier this month, however, it was reported that the forthcoming Equality Bill could delay the VAT rate hike, with the Radical Statistics Group noting that the tax should be adjusted so as to reflect a consumer's wealth.