Hamilton Warns Over VAT Increase

“Our shops and businesses – who are already going through exceptionally tough times – could see their trade further hit.xa0 It is significant that both traders and those in the hospitality industry have spoken openly about how the VAT increase could see significant job losses in their sectors.xa0 Retail and tourism are two of our economy’s biggest sectors and any adverse impact upon them could be devastating for Northern Ireland.xa0 We also need to remember that Northern Ireland is the only region of the UK still in recession and thus any VAT increase which could depress trade is worse for our province than for elsewhere in the UK. “Our border towns have befitted from cross border trade with southern shoppers seizing the benefit of lower prices in Northern Ireland but the VAT levels are now closer with the Republic of Ireland’s at 21%.xa0 Could cross-border business be negatively impacted? “Worst of all, it is widely acknowledged that because the worse-off spend proportionately more of their incomes on VAT rated goods, then it will hit them hardest putting already vulnerable people in more peril. “I believe that this VAT increase is the wrong measure at the wrong time for Northern Ireland and it is deeply regrettable that some local politicians actually supported this VAT increase last May”, he added.]]>