Fiscal Tips and Alistair

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by: Sarah Maple
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Word Count: 561
Date: Thu, 1 Apr 2010 Time: 7:31 AM
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At the end of 2009 there was a fair bit of media noise reminding shoppers to get spending before everything rises in price by 2.5% (this probably helped the excellent festive sales figures just announced by many retailers).

But I clearly remember that many high-street businesses weren't bothering to pass on the reduction following the December 2008 temporary VAT drop. This was unfair as the measure was designed to stimulate consumer spending and not to increase trader profit margins.

Last year, the Sunday Times and BBC Watchdog investigated this and found that several big name stores were doing one of three things: initially reducing prices and then raising them again soon after; reducing prices, but only on selected items; or not reducing prices at all.

Among those named and shamed were Gap, Maplin, Selfridges, Caffè Nero and Coffee Republic. In fact, at the time, Office for National Statistics analysis found that 34% of retailers ignored the reduction.

So why am I banging on about this now when it's already been covered elsewhere? Well, it's simply because the new year has begun and the January sales will soon be over. Once the sale stock has been cleared, watch how many stores up their prices in line with the restored VAT rate.

Yes, I know they're completely entitled to do so, but if any of the 34% of retailers who failed to pass on the rate cut 13 months ago, suddenly increase prices by 2.5%, don't believe them when they put the blame on the poor old Chancellor. Altogether now in anticipation - Boo!!! Hisss!!!If you have any views on VAT, please air them using the comment button.

Now let's forget the grumbling and end on a high. As both myself and Confused.com are all about saving you cash, here's a quick selection of currently available great deals - even with the 17.5% VAT.

· Half Price Pizza Express - what better way to abandon your new year's diet resolution (offer ends January 17).

· Travelodge Sale - UK rooms from £9. Hurry because the best beds sell out fast (starts 07/01/10).

· Fancy combining a new year break with your new year detox? Lastminute.com is hosting a selection of 2-4-1 and 50% off spa breaks for between now and March.

· Sticking with health, Holland and Barrett's January sale continues with up to 25% off slimming and detox items and 50% off selected vitamins and sports supplements.

· Bookworms should slither over to the Waterstones website and burrow into their ‘up to 80% off' sale. Books can be delivered to your door or collected instore.

· Treat your body, where else but at The Body Shop. The online arm of the natural beauty products store is currently hosting a big ‘up to 50% off' sale.

· Petrolheads can subscribe to Auto Express via WHSmiths and get six issues for just £1 (usual price £12). That's a saving of £11, or around 10 litres of petrol - Beep-Beep!!

· Alfred Hitchcock Box Set £17.99 (RRP £99.99) - 14 classic DVDs from the master of................. suspense (geddit?). Includes free delivery.

· Wrap up warm at the Fat Face ‘up to 70% off' sale. Visit their site through Quidco and get 8% cashback.· Mothercare has a half price sale on at the moment. A virtual visit via TopCashBack could net you a further 10% off.

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Find out more about savings at http://www.confused.com/savings