Retail giants urge ministers to delay any increase in VAT
LEADING retailers have upped pressure on the Government to either scrap or delay plans to increase VAT ahead of Tuesday’s emergency Budget, warning a hike will damage consumer spending, economic growth and jobs.
The UK’s largest supermarkets have led the charge against potential increases in VAT, prompting speculation that any increase in the tax will be at least postponed.
Tesco’s director of Corporate and Legal Affairs Lucy Neville-Rolfe said: “The recent rise in petrol prices is a big tax on consumers and removes the case for a rise in VAT. The poorest in society would be hardest hit, especially if there were an extension to food or children’s clothing.”
She added that she favoured the Conservatives’ idea of a fuel duty stabliser, which is a system that cuts fuel duty when the price of oil rises and vice-versa.
“[This] would increase revenue as petrol prices come down”, Neville-Rolfe