Retailers ‘to increase prices by more than VAT rise’
RETAILERS are reportedly planning to use next month’s rise in VAT to “mask” more extensive price increases, a survey by accountancy group KPMG has claimed.
It said 60% of retailers and consumer product manufacturers planned to increase their prices over and above the VAT rise to 20% from 17.5%.
It added that across all industries, 40% of UK firms planned to do the same. KPMG spoke to 200 senior managers.
A British Retail Consortium spokesman said the report was “nonsense”.
Richard Dodd, head of media at the British Retail Consortium, said 2011 would likely be even harder for UK retailers than 2010.
This was posted in Bdaily's Members' News section by Ruth Mitchell .
Enjoy the read? Get Bdaily delivered.
Sign up to receive our popular morning National email for free.