Qualified advisers answering your
Financial Questions
call 0800 092 1245

Has the reduction in VAT made a difference?

The government's decision to slash VAT from 17.5% to 15% only a couple of weeks ago had been put forward as the saviour of the high street in the run-up to Christmas. However, we have seen the beginning of a price war on the high street which was prompted by the 50% reduction sale at ailing retailer Woolworths. The likes of Tesco are now getting in on the act with reductions of up to 50% on a number of their lines and the likes of Morrisons, Sainsbury and Asda should follow.

This has effectively overshadowed the 2.5% VAT cut and rendered it meaningless in the overall picture although the government may well take some credit if the short-term retail figures show an improvement. The truth is that the UK retail sector is desperate for Christmas to be a success although with more and more retailers slashing prices up to two weeks before Christmas this does not leave an awful lot of scope as we near the festive period.

Surprisingly, the amount of money being spent on the high street appears to have remained steady compared to last year although there are signs of a shift from the off-line arena to the online market.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details