British VAT rise ‘welcome’

ANY increase in Britain’s VAT rate – anticipated as part of the country’s emergency budget, later today – should prove a welcome boost to the Irish economy, according to Chambers Ireland.

British Chancellor George Osborne is expected to include a 1.5%-2% increase in Britain’s VAT rate; taking it from 17.5% up to nearly 20%, to help reduce Britain’s budget deficit, which amounts to 11.5% of its GDP.

Such a move would bring the rate closer to Ireland’s 21% VAT level and could prove a needed boost to Irish retailers and level the playing field on cross-border trade.