SHOPS in Warrington are struggling to pass on the 2.5 per cent cut in VAT according to a local campaigner.
Lib Dem Prospective Parliamentary candidate for Warrington South Coun Jo Crotty (pictured) said income tax cuts for low and middle earners would have been more effective at stimulating the economy.
She said: “Evidence is mounting that shops are struggling to pass on the 2.5 per cent VAT cut in the Government’s Pre-Budget Report.”
She had visited a bookshop where she was told the store could not pass on the reduction on DVDs as they had been priced before the VAT cut. She said other retailers were also not passing on cuts.
Coun Crotty said: “If large retailers fail to pass the reduction onto consumers, in this vital period running up to Christmas, then shoppers’ confidence in our economy will not come surging back.”
“If large retailers are not compelled by the Government to pass on the recent VAT cut, it is unlikely that this will have any serious impact on reversing the current economic down turn,” she added.
