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pcernie
Legend
Joined: Sun Apr 26, 2009 12:30 pm
Posts: 45931
Location: Belfast
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 This story has got me thinking about the VAT going back up. I'm wondering if it'll affect any of you in any great way, or will you just carry on as normal?  http://news.bbc.co.uk/1/hi/business/8435887.stm | | | | Quote: several retailers have said that they will delay passing on the higher rate, while others say they will absorb the cost of the increase.
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Supermarket giants Tesco, Sainsbury's and Asda have all said that they will delay passing on the increased rate on thousands of products.
But Tesco has been accused of raising prices ahead of the tax rise.
A report in the Daily Mail claims that Tesco, Boots and Morrisons have all increased the prices of certain items in recent weeks.
Tesco told the newspaper its price changes had "no link whatsoever" to the VAT increase.
"A small proportion of products will have increased in price but this is either because of special offers coming to an end or an increase in the cost price. Many more prices have fallen than increased," a Tesco spokesperson said.
Boots said it benchmarked its prices against other retailers.
Morrisons, which has not claimed that it would freeze VAT, said prices vary throughout the year "reflecting costs and promotional changes".
Meanwhile, Argos and John Lewis both say they will not raise prices until the end of January.
Arcadia Group, which owns Topshop, Dorothy Perkins and BHS, has said it will absorb the cost of the increase in all of its stores.
But Marks and Spencer will raise prices on all general merchandise from 1 January and on food items on which the tax is paid from 11 January.
Shoppers will not notice a difference on price tags, though, as the retailer never displayed the VAT reduction on tags, instead giving customers a 2.5% discount at the till. | | | | |
I don't think it'll make much difference to me personally, but we'll see... _________________Plain English advice on everything money, purchase and service related:
http://www.moneysavingexpert.com/
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| Thu Dec 31, 2009 3:17 pm |
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nvj1662
Occasionally has a life
Joined: Tue May 05, 2009 6:15 pm
Posts: 175
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I suppose that being a rise across the board, no place will be relatively cheaper or more expensive than before; if you need to buy it, you still will.
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| Thu Dec 31, 2009 3:34 pm |
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saspro
Site Admin
Joined: Thu Apr 23, 2009 5:53 pm
Posts: 8603
Location: location, location
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The pub near my office is making a big fuss about not raising it's prices when the VAT changes back.
I did point out to him that he didn't lower his prices when it went down though.
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| Thu Dec 31, 2009 3:36 pm |
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AlunD
Site Admin
Joined: Fri Apr 24, 2009 6:12 am
Posts: 7011
Location: Wiltshire
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Putting it up at midnight to night could also be rather difficult for him. 
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| Thu Dec 31, 2009 3:40 pm |
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HeatherKay
Moderator
Joined: Thu Apr 23, 2009 6:13 pm
Posts: 7262
Location: Here, but not all there.
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I'm waiting for the fuel prices to go up astronomically.  _________________My Flickr | Snaptophobic BloggageHeather Kay: modelling details that matter. "Let my windows be open to receive new ideas but let me also be strong enough not to be blown away by them." - Mahatma Gandhi.
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| Thu Dec 31, 2009 3:41 pm |
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AlunD
Site Admin
Joined: Fri Apr 24, 2009 6:12 am
Posts: 7011
Location: Wiltshire
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Doesn't need the VAT rate to change for that to happen
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| Thu Dec 31, 2009 3:42 pm |
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jonbwfc
What's a life?
Joined: Thu Apr 23, 2009 7:26 pm
Posts: 17040
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The thing that's irritating me is they actually put up fuel duty to offset the loss to the exchequer caused by the reduction in V.A.T. Are they now reducing fuel duty now the V.A.T. holiday is ended? Oh go on, have a guess... Jon
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| Thu Dec 31, 2009 4:04 pm |
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l3v1ck
What's a life?
Joined: Fri Apr 24, 2009 10:21 am
Posts: 12700
Location: The Right Side of the Pennines (metaphorically & geographically)
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Just filled up before it goes up tonight.
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| Thu Dec 31, 2009 4:10 pm |
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adidan
I haven't seen my friends in so long
Joined: Thu Apr 23, 2009 9:43 pm
Posts: 5048
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What a joke. In the beginning it looked like the VAT reduction was passed on but prices have crept up so I don't think in reality it's been passed on for a long while.
Now they can up the price again saying it's because of the VAT increase.
As for petrol, I think this is the first recession in history where it's actually gone up in price rather than down thanks to all the good for nothing traders playing with the market.
* grumble, grumble *
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Fogmeister I ventured into Solitude but didn't really do much.
jonbwfc I was behind her in a queue today - but I wouldn't describe it as 'bushy'.
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| Thu Dec 31, 2009 4:16 pm |
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koli
Doesn't have much of a life
Joined: Fri Apr 24, 2009 5:12 pm
Posts: 1171
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People, you have to admit that price is set by demand and supply forces. And it works for 99% of the goods in economy, admittedly there are some market inefficiencies...
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| Thu Dec 31, 2009 5:10 pm |
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ProfessorF
What's a life?
Joined: Thu Apr 23, 2009 7:56 pm
Posts: 12030
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Not for everything. It's often set by what the market will stand. Diamonds are a great example of this.
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| Thu Dec 31, 2009 5:12 pm |
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adidan
I haven't seen my friends in so long
Joined: Thu Apr 23, 2009 9:43 pm
Posts: 5048
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Petrol isn't completely. Investors have hugely affected that market.
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Fogmeister I ventured into Solitude but didn't really do much.
jonbwfc I was behind her in a queue today - but I wouldn't describe it as 'bushy'.
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| Thu Dec 31, 2009 5:15 pm |
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bobbdobbs
I haven't seen my friends in so long
Joined: Thu Apr 23, 2009 7:10 pm
Posts: 5490
Location: just behind you!
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No, prices aren't always set by supply and demand. Prices are also set as high as the supplier thinks they can get away with. _________________Finally joined Flickr
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| Thu Dec 31, 2009 5:49 pm |
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koli
Doesn't have much of a life
Joined: Fri Apr 24, 2009 5:12 pm
Posts: 1171
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Yes, because there is demand for that product at that price, that's how it works.
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| Thu Dec 31, 2009 6:11 pm |
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bobbdobbs
I haven't seen my friends in so long
Joined: Thu Apr 23, 2009 7:10 pm
Posts: 5490
Location: just behind you!
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mmmm rolex, cartier, ferrari. Price is set independently from demand. _________________Finally joined Flickr
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| Thu Dec 31, 2009 6:21 pm |
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