The pre-Budget report gives “no real advantage” to small and independent retailers in the long term, it has been claimed.
According to the National Federation of Retail Newsagents, some of the measures announced in the report will “potentially” help these firms, but the VAT cut will have little impact.
National president Naresh Purohit said: “Increases in corporation tax will still go ahead next year and the year after that. National Insurance contributions will also rise sharply from 2011.”
He added these changes will “make the situation worse” for smaller firms.
Today Tesco said it will be passing on the 2.5% VAT cut early.
