BRC urges the Government to delay VAT increase

The retail body said that implementing the rise during retailers' busiest time of the year will be extremely difficult for the sector.

It said that the VAT cut to 15 per cent last year cost the sector£90m to implement. The planned timing of the increase back to 17.5 per cent is likely to cost the industry the same again.

The BRC is asking for the VAT increase to be put back by a month as part of its submission ahead of the Budget on April 22.

The organisation is also calling for an immediate freeze on all new business rate burdens and the reinstatement of empty property rate relief.

BRC director-general Stephen Robertson said: ““Property is one of retailing’s biggest costs, alongside our people. There is a real danger that these government-imposed costs will result in more empty high street stores and further job losses. Business rates must be frozen at 2008 levels.

“Retailers don’t want handouts, but we can’t cope with increasing government-imposed handicaps. Retailing is at the heart of every local community, providing one in nine UK jobs. The Government must work with us to protect these jobs and promote new opportunities.”

Last week in a letter to Retail Week Chancellor Alistair Darling refused to back down on the 5 per cent increase in business rates due next month.