• Budget: Cutting VAT could plough billions into UK businesses

        • Research from commercial insurer, NFU Mutual, has found that over half of consumers would be likely to spend the extra savings, gained as a result of a VAT cut, if it is announced in the Chancellor’s Budget.

          A cut in VAT by 5 per cent could provide the average UK adult with extra spending power of £562 per year. With NFU Mutual’s survey showing that 51 per cent of consumers would spend this extra money as a result of VAT savings, British businesses could look forward to a potential cash injection of up to £15bn.

          Frank Woods, Retail Sector Specialist at NFU Mutual said, “if Britain is to defend its heritage as a nation of shopkeepers, businesses need real support to keep afloat. Retailers need a Budget with a long-term solution that lifts confidence in spending so we can keep the vibrant social spaces of the country alive.”

          The research found that 23 per cent would spend on food and drink grocery shopping, 17 per cent would spend on holidays abroad, 16 per cent would spend on eating out, 16 per cent would spend on holidays in the UK, and 15 per cent would spend on the high street.

          Most, 47 per cent, would spend on buying more items or doing additional activities, rather than buying higher quality items or doing more expensive activities (31%).

          Frank added, “while we would hope for increased spending confidence, there is no guarantee that the spending power would be ploughed back into businesses in the UK. Our research showed 39 per cent of people would save the extra money, and 14 per cent would spend online, which could include spending in businesses based around the world, alongside 17 per cent spending on holidays abroad. While the overall Budget is expected to support growth, any boosts such as a cut in VAT could also be offset by increases in other taxes, meaning that savings aren’t necessarily felt.”

        • Stay up to date - Click here and register for FREE OEN online membership and enjoy unlimited access to a host of benefits including the exclusive members area of the website, downloadable business tools, current and back issues archive, priority breaking news alerts, weekly e news summary and the OEN app

        • Related Articles

        • Retailers still too complacent about digital transformation

          Retailers still too complacent about digital transformation

          Tuesday 20th Jul 2021 by clareb
          New research has revealed that the retail industry is dangerously underestimating the role that technology will play in building a sustainable operation that can thrive in the face of future pandemics, climate crises, and economic and political insta...Read More...
          UK workers hesitant to return to the office

          UK workers hesitant to return to the office

          Monday 19th Jul 2021 by clareb
          New research commissioned by Chargifi has revealed that despite restrictions being lifted, office workers in the UK are resistant to a full-time office return. The survey of 1,500 UK and US office workers found that over half of British workers...Read More...
          Hybrid working - don’t fake it to make it

          Hybrid working - don’t fake it to make it

          Wednesday 7th Jul 2021 by clareb
          Hybrid working should be viewed as one positive outcome of the pandemic, an opportunity for companies to revolutionise working practices and empower employees to improve their work-life balance.  Dan Harding, CEO, Sign In App explains...Read More...
                • About Us

                  OEN is the leading source of business news and information for buyers of office equipment, supplies and services within mid tier and up sized organisations. Our multi-platform approach delivers relevant, engaging and focussed content via our main printed magazine, bespoke guides and supplements, website, digital editions, apps, and newsletters with an unrivalled reach across the industry. A highly trusted and respected brand for many years, the print version of OEN last year celebrated its Diamond anniversary.

                  For our latest Media packs and more details on our range of services click here

                • View Latest Issue