Tesco urges Darling to delay VAT rise

Retail giant calls on the chancellor to postpone the rise from 15 per cent to 17.5 per cent on January 1st.
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Tesco has joined a list of other retailers and manufacturers in backing the campaign by The Daily Telegraph. Other leading figures to back the campaign include Sir Philip Green and Sir Stuart Rose.

Lucy Neville Rolfe, Tesco's director for corporate and legal affairs and the chief Government lobbyist for Tesco said:

"The measures introduced by the Government last year helped consumers and businesses through the toughest times. We are not out of the woods yet and we need to be very careful to maintain consumer confidence especially as unemployment rises.

"The cut in VAT was an especially welcome boost to consumers, and whilst we have always known it was a temporary change the timing of the increase on New Year's Eve will hit retailers large and small at a key trading time."

"I would urge the Chancellor to delay that change until a more sensible date. It would help our staff enormously if the change took place towards the end of January, after the key Christmas and sale period."

Though food does not carry any VAT, around half of the goods sold by Tesco are subject to VAT.


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