Retail in need of ‘urgent action’

URGENT action is needed to stimulate consumer spending south of the border, according to Retail Ireland who said the exodus of shoppers to the North will cost 25,000 jobs this year.

Finance Minister Brian Lenihan admitted that it was a mistake to increase VAT in the October budget and said e700 million has been lost in revenue from shoppers going North.

As the Government aims to cut the e4.5 billion gap in public finances with the April 7 budget, it has been urged to drop the VAT rate to stimulate retail sales.