Monthly Archives: January 2011

Ring out the old….Ring in the new….has anything changed?

Yes, VAT in the UK has risen to 20%, for consumers buying “large ticket” items and stealthily increasing the cost of living across the board, by over £400 per typical family suggested by some commentators. This figure is based on average spend on general purchases, fuel, utilities and adult clothing. In response, retailers are saying that high discounts and sales are in fact saving costs to consumers, as they try to catch up on sales lost prior to Christmas due to the inclement weather. The discounts of course will not continue much into 2011 and consumers will suffer from continued increased costs of goods and services. A substantial impact will be on the weekly costs of refueling vehicles and the Winter utility costs of gas and electricity which contain supply driven increases well above inflation plus a VAT impact. Have a Happy New Year……