20% VAT – The Reviews

So, emergency budget delivered and the new Chancellor, George Osborne, has spoken. We feared the worst, and yet the prevailant reaction seems to be 'not as bad as I thought it would be'.  Maybe, but the proof of this financial pudding will be in the consumption...

Obviously one of the big talking points amongst retailers has been the 2.5% rise in VAT to 20%, and the retail insiders have not been shy in sharing their views. We've scraped a couple of reactions from both side of the fence and put them here for you to look at.

It's going to be bad...

- In the British Retail Consortium coverage of the budget, and on the matter of the VAT rise BRC Director General Stephen Robertson said: "We didn't want a VAT increase. It'll hit jobs, consumer spending, the pace of recovery and add to inflation but we accept the Government has no easy options.

"It's some consolation that the range of VATable products isn't being extended.

"Changing computer systems and shelf prices on tens of thousands of products is a huge, costly exercise for retailers. Planning for catalogues is a particular nightmare.

- "The VAT hike could be enough to put weak grocery retailers under", Richard Fleming, UK head of restructuring at KPMG said in The Grocer.

It's not so bad really...

- The Guardian reported a roar in retail shares as budget VAT rise is delayed until January.

- Retail Week Editor, Tim Danaher said in his blog “We’ve been speaking to a lot of retailers about yesterday’s Budget, and particularly the increase in VAT, and no-one seems particularly worked up about it.