THE pressure on the retail sector will continue given the British government’s decision to retain its 15% VAT rate until the end of the year.

The rate of VAT in the North is set to fall from 17.5% to 15%, British Chancellor Alastair Darling confirmed in today’s Pre-Budget Report.

Up to 7,000 shop jobs could be lost if the growth in out-of-town centres isn’t halted, small retailers in the North warned today.