|
archived news blog
March 2010 (18)
February 2010 (45)
January 2010 (47)
December 2009 (56)
November 2009 (49)
October 2009 (47)
September 2009 (47)
August 2009 (47)
Discounts dampen effects of VAT rise. Pearson May News Update - Wednesday 3 February
- Discounts dampen effects of VAT rise
- BU editor's comments (04 February 2010)
- Small firms need to be made more aware of European loans
Discounts dampen effects of VAT rise
The return to the old rate of VAT on 1 January had little effect on shop prices as businesses sought to offset the extra cost by offering customers discounts.
The latest British Retail Consortium (BRC) shop price index found that prices rose by 2.3 per cent in January, up by just 0.1 per cent from the December mark.
Along with significant discounting, some of the larger retailers also held back on passing on the extra 2.5 per cent in VAT.
Stephen Robertson, the BRC's director general, said: "January's VAT increase was lost among a huge number of discounts and promotions. We would have expected non-food inflation to be higher because of the VAT rate reversal, but many shops held off passing the extra costs onto their customers.
"Fierce competition, in the face of weakening consumer demand and uncertainty about the recovery, is keeping shop prices down."
Business General
This section contains a host of advice and information on a range of business matters, from insuring your
business to dealing with employee absence. Simply visit the topics listed below for further information,
ideas, tips and strategies on how to take your business forward.
Click here for more information
See What's On Our Site
Our site also contains:
- A huge database of business information
- Your portal to the web with our powerful search facilities and Links section
Home | Contact Us | Recruitment | Services | News | Knowledge Centre | International
About Us | Companies House Search | Links | Search | Register | Logout
Terms
and Conditions
Technical Problems - email service@pearsonmay.co.uk
Copyright © 2009 Pearson May. All rights reserved.
