BRC disputes VAT spending claims
Claims that VAT cuts have seen more and more British consumers reaching for their debit and credit cards have been challenged by the British Retail Consortium (BRC).
The Centre for Economic and Business Research (CEBR) said in a recent press release that since the government introduced the cuts in December, consumers had been spending more.
However, BRC spokesman Richard Dodd insists there is little evidence to support a direct link.
He says: "We do our own retail sales survey and if you look at the figures which we get direct from retailers you'll find that in November last year total sales were down by 0.4 per cent on the previous year.
"Then of course on December 1st the VAT cut came in and interestingly we actually have sales down by 1.4 per cent compared to the previous year."
Mr Dodds adds discounts that retailers have been offering of their own accord and lower interest rates were just as likely to have affected the CEBR's figures as VAT considerations.
The CEBR claimed the tax cut boosted retail spend by £2.1 billion in the three months after it was introduced.
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