A substantial rise in VAT could have negative consequences for the country's consumers, it has been suggested.
The
British Retail Consortium (BRC) has revealed that consumer spending would be badly affected if the government were to introduce a VAT rate of 20 per cent in the near future.
Meanwhile, in the first 12 months following a VAT rise, the organisation believes that the higher tax rate could cost the UK as many as 30,000 jobs.
Stephen Robertson, director general of the BRC, believes that ministers should not hit consumers with negative tax increases.
He commented: "The government must now deliver a route to stability that supports companies and customers by avoiding damaging tax rises."
Last month, the BRC also suggested that a variety of financial concerns currently seem to be troubling the UK's consumers, which might be having an impact on those in
credit card debt.
The things that are worrying people at present include fuel bills, according to the organisation, along with fears about their future job prospects.
Posted by Gemma Walker.
