I was reading an article today regarding VAT increasing back to 17.5% on January 1st 2010. Apparently, when VAT decreased to 15% on 24th November last year, retailers spent £90million on the changes they had to make to abide by the new change.

So....you can imagine what their anger at potentially having to spend that much once again only to put prices back up to what they were a year ago.

As far as I know, 1/3 of retailers didn't even bother to change their prices when VAT reduced last year - purely because they knew it was planned to go back up and, quite frankly they thought smart! I've been to many shops in the last year, and when I've gone to buy something they will take another 2.5% of at the till, rather than stating the change on the label. To be honest, for a consumer it's nicer! It makes you think you're getting a bargain! However, I have only seen this in clothes shops - it will be whole different ball game for supermarkets, restaurants etc.

Well, lets hope that once it has gone back to 17.5%, it will stay like that for a while! I say that, but I've heard that if the Conservatives come to power, they are looking to increasing it to 20%!!! Happy days!

20% my ass lol! Can you imagine the affetc that will have on the price on every day goods?

I think it should stay where it is now or go back to 17.5% but thats it! Higher than that and some places will really suffer you know?

I agree with you the smart retailers wre the ones that left the prices as they were! I mean why fiddle about for a short-term change you know? Ita pretty pointless job isnt it?

I know it's crazy eh!

I know what you mean about changing all the rates may be classed as a pointless job - however with the likes of Supermarkets/Restaurants etc I think it may have been a legal requirement for them to change?? I mean if your a cash out person in Tescos and for one customer you forget to take that extra 2.5% off, they could get prosecuted for that, surely? But with clothes shops, it's easy to take it off an item every now and again.

It's a hard one - I just can't believe how much retailers paid out for the change! I thought it was going to help the economy!!

Well lets wait until the next election and see who comes to power - and is the Conservatives win the title - I don't think this should be one of the first things on their list to carry out!

The VAT change was completely stupid and pointless - would have been much better to reduce Employers Contributions to National Insurance, to help preserve jobs - instead, they are raising it!

Nothing that they are doing or suggesting is working is it? I do wonder how this will all turn out you know!

I totally agree, the change in VAT had no real effect and it seemed just to be a pain for many businesses. Maybe a cut in income tax for low earners would have been the better option!

Haha yes that would be awsome but again cutting the taxes is something they would rarely or never do! I can imagine these going back up again at some point can you not?