Major retail outlets and stores across UK have promised to either absorb or altogether delay the rise in VAT as retail groups shared the forecast that for the current month, consumer spending is set to be "a little lighter" than usual.
Customers, specifically those looking to purchase expensive "big ticket" products like furniture or cars, rushed to the stores before VAT returned from its low of 15% to the original figure of 17.5%.
But various big retailers have pledged to now freeze VAT at its low 15% rate on various products, while others have said that they will introduce the increase "gradually".
As shared by Sir Philip Green, all of his Arcadia Group stores, including frequented chains such as Top Shop, Dorothy Perkins and Miss Selfridge, will slowly absorb the VAT increase. Argos, on the other hand, has every plan of delaying any increases in prices till January end.
Tesco, the giant supermarket chain, has promised to freeze the rise in tax on various non-food products. "We work hard to keep prices down for a customer, which is why we have frozen VAT on thousands of products at the lower rate of 15%. This is on top of 5,000 price cuts over the last two weeks, with average reductions of over 10%", said a Tesco spokesperson.