Sir Philip Green and Sir Stuart Rose have led discussions among retailers scrambling to deliver the cut in VAT by the time it comes into force on Monday.

The Arcadia owner and the Marks & Spencer executive chairman have led a conference call of more than a dozen retailers to discuss the likelihood of achieving the VAT change by December 1, according to the Financial Times.

The reduction of VAT to 15 per cent, announced by Chancellor Alistair Darling in the pre-Budget report on November 24, will reduce product prices by 2.1 per cent, and will be in force until the end of next year.

Many retailers are struggling to work out the logistics of reducing the costs of their stock, with many saying the task is too big to complete in seven days.

Rose described the challenge as a “logistical nightmare” and said the changes would be difficult in children’s wear, where VAT is only added to clothes for children aged 14 and over.

A statement is expected today from the retailers, outlining what price cuts they can deliver and when.

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