VAT rise ruled out as part of pre-Budget report

AA readers say there is 'no way' the Chancellor will press ahead with a rise to the VAT standard rate in the pre-Budget report

Written by Judith Tydd

Accountancy Age, 12 Nov 2008

Accountancy Age readers believe the Chancellor will not press ahead with a rise to the standard rate of VAT in the pre-Budget report on 24 November.

Some 62% of respondents to a poll on our website said there is ‘no way’ Alistair Darling will propose an increase.

A VAT rate rise had been expected but, in the last few days, moves to cut taxes as a fiscal stimulus have taken precedence over revenue-raising measures in political discussion.

Some 22% of respondents to the poll thought the prospect of a VAT rate rise is still a consideration in
the short-term. A total of 10% felt Darling was likely to raise VAT by more than 1%, with a mere 6% believing it would rise by less than 1%.

The November PBR will be the first since 2002.