This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8435887.stm

The article has changed 4 times. There is an RSS feed of changes available.

Version 0 Version 1
Shoppers face confusion over VAT Shoppers face confusion over VAT
(31 minutes later)
Shoppers are facing the last day of the lower rate of VAT, although many retailers have said they will not increase prices on 1 January.Shoppers are facing the last day of the lower rate of VAT, although many retailers have said they will not increase prices on 1 January.
VAT is set to return to 17.5% in the new year after being reduced to 15% on 1 December 2008.VAT is set to return to 17.5% in the new year after being reduced to 15% on 1 December 2008.
The government cut VAT in an attempt to boost spending in the recession.The government cut VAT in an attempt to boost spending in the recession.
But several retailers have said that they will delay passing on the higher rate, while others say they will absorb the cost of the increase.But several retailers have said that they will delay passing on the higher rate, while others say they will absorb the cost of the increase.
The Centre for Economics and Business Research (CEBR) estimates that the 13-month tax cut helped boost consumer spending by £6.8bn. The Centre for Economics and Business Research (CEBR) estimates that the 13-month tax cut helped boost consumer spending by £6.8bn, although the British Retail Consortium (BRC) says it has had a "very limited effect".
However, it warned that the first few months of 2010 could be tough for retailers, as spending may be affected by the increase in VAT and rising inflation. However, the CEBR warned that the first few months of 2010 could be tough for retailers, as spending may be affected by the increase in VAT and rising inflation.
Supermarket giants Tesco, Sainsbury's and Asda have all said that they will delay passing on the increased rate on thousands of products.Supermarket giants Tesco, Sainsbury's and Asda have all said that they will delay passing on the increased rate on thousands of products.
Argos and John Lewis both say they will not raise prices until the end of January, while Boots will "gradually increase" its prices.
Arcadia Group, which owns Topshop, Dorothy Perkins and BHS, has said it will absorb the cost of the increase in all of its stores.
But Marks and Spencer will raise prices on all general merchandise from 1 January and on food items on which the tax is paid from 11 January.
Shoppers will not notice a difference on price tags, though, as the retailer never displayed the VAT reduction on tags, instead giving customers a 2.5% discount at the till.