Shops to sneak prices up under VAT increase guise

5 January 2011

VATThis VAT increase is probably going to kill us all. Things are going to be so expensive that we're going to have to cut off pensioners' limbs, because they're the only things dry enough for us to set fire to in a bid to stay warm. Besides, that lot have had a good innings.

To make matters worse, it seems that UK companies are planning on using the January's VAT increase to raise their prices, according to research from bean-counters KPMG.

Bitterwallet has long been on the trail of companies bumping up prices in the name of VAT, and nowWhich! report that shops and manufacturers are the most likely to bump up the price of stuff, hoping that no-one will notice amid the confusion of a VAT rise.

Someone called Sarah Dennis from Which! says: "To add to pricing confusion following the VAT hike, shops also have until 1 February 2011 to adjust their prices on the shelf. This means that the price displayed on the tag may not be what you're asked to pay at the till. Try to have an idea of what you expect to pay - and don't be afraid to double check that the price is correct."

Around 60% of retailers are looking at raising their prices by more than the 2.5% VAT increase, which is clearly a massive kick in the balls for everyone. 40% of financial services and utilities intend to do the same.

Happy new year everyone.

TOPICS:   High Street News   Banking   Economy


  • kv
    never heard of inflation?
  • Alex
    Don't forget a 2.5% increase in VAT does not mean prices are going up by 2.5%. Prices should go up by 2.13%.
  • RazorD
    Apple's whole "Round Pound" deal means they've put the cost of iPhone 4 bumpers up by nearly double the VAT rise...
  • Gunn
    Noticed a few websites putting up prices automatically by 2.5% yesterday but it gives really rubbish prices, so im sure a few will round "up" to make them look better and pocket a bit too.
  • Joff
    I now refuse to buy anything.
  • Zebs
    I have invented a time machine to beat the VAT rise. It definitely works, because _____ (*) (*) Insert your own great time travel joke here. Or buy one from us for only £1.99 + 2.13 % ! e.g. I wrote this last Monday / before I was born / from the future, etc (**) (**) If you read these, you owe us money
  • Dick W.
    Yesterday evening when nobody was looking I wrote "and 2p" on a poundland sign. I'm still laughing now.
  • Jason w.
    Whats VAT?
  • Mr M.
    Yes, But the man making the goods along with the guy delivering them has to pay the extra VAT too...
  • Naughty W.
    I was in Wickes at just before new year and they were placing their new 'VAT' prices.... a few that caught me was their paint range... from £15.99 going up to £17.09 (should have been about 16.32 assuming the same net cost of £13.60 per tin!) When I asked an assistant they told me it was the VAT increase?!!
  • Customer
    Shops can charge what they like for their goods! Every year a pint of beer goes up 1 or 2p in the budget but the brewery/ landlord puts your pint up by 5p and you dont bat an eye lid! If it's only a few pence who really cares.
  • Car B.
    I suspect many petrol stations will do the same. If everyone didnt buy petrol at stations raising there prices too much then they would be forced to reduce them. same applies to shops. Shop round for the best deals.
  • Rutha H.
    A quite nice niche blog, and a first-rate design there sparks Simplicity yet complex algorithm of the internet. Thank You.
  • shops
    By: Jim Pretin, practice session is?And investors The, been told that.Treat it like, of uncertainty: default.Makes you perspire shops, through the search your team If.But you?ll also, when the work.,

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment