No VAT drop expected in budget

NO LOWERING of VAT is expected in next month’s budget despite a potential loss of €700 million in cross border shopping this year.

A report published by Finance Minister Brian Lenihan has revealed the amount of money flowing across the border with Northern Ireland in 2009 will be twice what it was two years ago.

It said between €450m and €700m will be spent by residents of the Republic driving to the North before December — in 2007 the estimated value of this trade was between €210m and €340m.