Alistair Darling’s decision to slash VAT has been welcomed by the British Retail Consortium, which it said will “put the economy back on course to stability”.
But director general Stephen Robertson said that shops, especially smaller ones, will find it difficult to implement the changes and time will be wasted re-stickering items.
And Robertson said that retailers are disappointed that the Chancellor did not postpone the 2010 revaluation for business rates in the pre-Budget report.
He commented: “Retailers are crucial to jobs, customers and communities. In recession our role is even more important. Government should be helping, not hindering. This is a serious oversight.”
The government said properties with a rateable value value of less than £15,000 will be exempt from Empty Property Rates for a year from 2009.
Darling’s announcement that tax on alcohol will be increased was met with dismay from both the Wine and Spirit Trade Association (WSTA) and the Association of Licensed Multiple Retailers.
WSTA chief executive Jeremy Beadles said: “The Chancellor has given consumers no cause to celebrate this Christmas.
“This year he will have increased tax on alcohol by a massive 17%, hurting consumers when they have little else to cheer about. It’s the wrong tax rise at the wrong time.”
VAT will be cut from 17.5% to 15% from 1 December, the lowest rate possible under European Union law.
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