VAT Increase

Well the VAT in most stores has now gone back up to 17.5% but will this effect buyers habits. There were in reports in the papers that people just before the increase were buying big items like cars and electrical goods to avoid the tax increase and get a better price. I was thankfully one of those people. I bought a new car when the tax was still 15% and when the government was offering the scrappage allowance and I am very glad of it. But it makes you wonder what will happen the certain industries now. I don’t the government will be helping out industries like car manufacturing again after the tax increase, and although we are heading out of the recession, it is still a slow process and I don’t think people are likely to start spending big anytime soon! Will it make a difference to people’s general spending? i.e food shopping and luxuries like clothes and shoes etc, I guess only time will tell.

Tags: VAT increase