Traders comment on VAT cut

"ANY CUT is good news '“ anything that helps our traders at this time is good because they need help." So said Bexhill's Chamber of Commerce Communications Officer officer Sue Spice, speaking in response to the Chancellors announcement earlier this week, that VAT is to be cut to 15 percent.

However, the general consensus amongst the independently owned businesses of Bexhill is that the two and a half percent cut will have little effect overall.

Effective from December 1, the cut in VAT, is the latest of a number of tax measures which the PM is introducing, hoping to kick-start the economy and prevent the country from sliding even deeper into recession.

But many local traders say it's just not enough.

Hide Ad
Hide Ad

Ian Standley managing director of Drays electrical store in Western Road, said he thinks that the cut will have, "very little effect", on the market place, and that the government would have been, "better off reducing fuel costs".

And whilst he believes that in general the public will be happy with the cut, he thinks that overall the impact will be "limited."

Steve Brown, owner of The Pound shop in Western road also felt that, "not much difference" will be made. He stated that they would not be changing their prices, saying: "We're not going to become the 97 and a half p shop".

Owners of family run business Wells shoe shop in Sackville Road, are of the opinion that the cut will actually cause more work for their business than anything else.

Hide Ad
Hide Ad

They now have the task of changing the prices on all their boxes of shoes which are stacked to the ceiling.

Nick Wells said that the cut was, "not going to make much difference because people won't be rushing out to buy more."

Wendy Wells added: "A ten pound pair of slippers with 25p off isn't going to make much difference"

Andrew Thompson, owner of Lomax jewellery shop in Sackville Road stated that as he does not show the VAT on his prices customers are generally not going to be aware of the cut.

Hide Ad
Hide Ad

But Tracey Woollaston of Beauty Haven in Buckhurst Place welcomed the Chancellors measures and said the cut is:"Fantastic"

She added: "The change to VAT is really going to help small businesses because VAT just cripples you. By the time you have taken the VAT and tax out there is not enough left for wages for yourself '“ the VAT man has had more money from the salon than I did!"

James Royston, Labour Party candidate for Bexhill and Battle also welcomed the cut, one of a number of incentives announced along with the Pre-Budget report, which he described as: "Real help to get people and businesses through tough times."

He added:"The cut in VAT will provide a welcome boost to the economy locally."

Related topics: