Pre Budget: VAT to rise to 17.5% in Jan as planned

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"Chancellor Alistair Darling has confirmed VAT will rise from 15% to 17.5% in January as planned...."

Read the full story:
VAT to rise to 17.5% in Jan as planned

wizk1

I don't see the benefit of the original cut. Everywhere you look now, prices are still set at £X.99 meaning businesses have swallowed up the benefit of it, as expected. The restoration of the rate will give retailers the excuse to hike their product prices by more than 2.5% VAT difference. So again, we'll lose out. But then again, it's not like never never saw this coming.

Frozenace

If you look at Televisions, the newest model is about 60% of the original price 6-8 months after release.

I'll stagger all my big ticket purchases until my pay/earnings rise significantly.