BRC calls for VAT and rates plan to be put on hold

9th March | legislation | The plan to reinstate 17.5% VAT and a 5% increase in business rates should be shelved, according to the British Retail Consortium. But the retailer funded lobby group’s call is likely to fall on deaf ears within Government, with chancellor Alistair Darling insisting both measures will go ahead as planned.

The reintroduction of VAT to its previous level is due to take place in December – at the same time many furniture and flooring retailers will be planning their Winter sale, while the business rate increase comes into effect next month and is likely to heap more pressure on cash strapped retailers.

Alistair Darling says there are no plans to back down on either measure, and the Government will also continue with its plan to introduce a revaluation of business rates in 2010, which is due to be based on property values in 2008.