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VAT increase planned for worst possible time says BRC
Archived article dated Monday March 9th 2009
The Chancellor should use his Budget to announce he will delay the VAT increase by a least a month from its current due date of 31 December.
The BRC is warning Alistair Darling that he has chosen the worst possible time of year to impose the huge task of reversing last year's VAT cut. December is the busiest period for most retailers. It cost the sector around £90 million to implement the cut to 15 per cent and, because of the timing, will cost a similar amount to reintroduce the 17.5 per cent rate.
The call to delay the VAT increase is part of the 'Turning the Corner' recovery plan contained in the BRC's Budget submission, which is published today (Monday). The BRC is also calling for an immediate freeze of new business rates burdens, as part of a package of measures to preserve and promote retail opportunities.
Stephen Robertson, BRC Director General, said: “Retailing is facing the toughest trading conditions in decades, with predictions of 15 per cent of shops closing and up to 200,000 job losses.
“Retailers don't want handouts, but we can't cope with increasing Government-imposed handicaps. Retailing is at the heart of every local community, providing one in nine UK jobs. The Government must work with us to protect these jobs and promote new opportunities.”
Tagged as: BRC | VAT increase
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