British set to bring VAT rate closer to Republic’s

THE British government could announce plans this week to bring its VAT rate closer to the Republic’s, in a move that may deter shoppers heading North.

Britain’s chancellor of the exchequer, Alistair Darling, in his pre-budget report (PBR), which will be announced tomorrow is expected either to hike the VAT rate to 20% or signal plans to do so.

The VAT rate in Britain is due to increase from 15% to 17.5% from the start of next year.