The Telegraph is reporting that the rise in the rate of VAT coming into force today is going to be used by retailers as a smokescreen to rise prices even further.
A study by KPMG Performance & Technology found that 60 per cent of retail managers intended to increase prices above the 2.1 per cent.
Retailers would argue that price and margins have been squeezed for so long that a rise is needed for them to stay in profit, although some of the bigger high-street stores such as Debenhams and Marks & Spencer have promised to “absorb a proportion of the increase for as long as possible”.
We’d like to hear of any cheeky price rises above the standard increase in VAT – to name and shame the culprits leave a comment below, or if you’re on Twitter, tweet them with the hashtag #vatwatch (and follow MoneyWatch whilst you’re at it).
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