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Is the VAT rate going up?

2 June 2010 No Comment

It’s starting to get a bit frustrating now, but with a £163 Billion deficit it seems inevitable that the VAT rate is going to go up at some point. It’s probably more of a question as to when it will be. My guess would be that it would be a bit of a shock to the UK retail market if it was anytime before next year, but who knows. Aggressive moves are needed to pull us out of the current financial hole.

As a customer-facing retail business we are dramatically affected by any price increases by Car manufacturers, but a global increase in all prices will certainly impact buying behaviour across the board. It’s certainly not going to stimulate spend, but it’s fair to say that car prices are pretty reasonable for the amount of investment required & as we already offer some big discounts it should only serve to dent a little of the savings customers see. So, we wait and see. Bring on the 22nd June when the first coalition budget is announced.