Member Article

Poll reveals shoppers’ muted response to VAT cut

Shoppers have given a muted response to the lower rate of VAT, although most want it extended, a BBC poll has found.

Some 23% of people said they had spent money they would not otherwise have done so to take advantage of the 15% VAT rate.

Meanwhile, 27% said they would bring forward their spending before the sales tax increased to 17.5% in January.

The survey, for the BBC’s Working Lunch programme, found that 73% wanted the lower rate to be extended.

Almost one-third, 32%, of respondents said their spending would decrease after the VAT rate is increased in January.

More men (27%) than women (19%) said that they had spent money they would not otherwise have done so to take advantage of the lower rate.

Treasury minister Stephen Timms said that the idea of the cut was to give people a little extra money in their pockets.

However, he added that there would be no extension of the 15% rate into January and “no plans” of other future changes.

He said that sales in the shops had been “remarkably resilient”.

This was posted in Bdaily's Members' News section by Ruth Mitchell .