Vat Rate Cut Comes Into Force
While the VAT Rate Change came into force today, many companies and stores were still racing to get their systems updated and the prices in line. Early signs for the companies that did get it done in time however, were positive.
Even some major department stores were facing struggles, and some stores will not be bringing in the reduced prices until Wednesday.
On the other hand, many companies have already introduced the new prices.
Initial signs suggest that there has been a slight boost in consumer confidence, however, experts are hesitant to put this down to the VAT rate cut entirely. It will be at least a few weeks before a good analysis can be made, and conclusions about the effectiveness of the VAT rate change can be drawn in full.
The government have been forced to admit that the VAT rate changes may put small businesses - especially ones paying flat rate VAT - on the back foot, so many are hoping that these VAT rate changes will trigger a sustained improvement in consumer confidence.
For the rest of us, it is a case of waiting and seeing - footfall seems to be in the rise in many stores, but always is at this time of year, but early indications have given many companies hope.