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Tax increase leads Brits to 'reconsider' purchases


The VAT hike will result in a number of people reconsidering major purchases in 2011.

This is according to a recent survey conducted by gocompare.com, which revealed that seven out of ten Brits will think again about big ticket objects, such as cars, because of the 2.5 per cent rise in VAT.

Furthermore, 61.1 per cent of people questioned by the price comparison site expect that 2011 will be a very difficult year financially.

The rising cost of living and bills was cited as the biggest financial worry by 22.1 per cent of people.

John Miles, business development director at the website, commented: "While the 2.5 per cent VAT increase is unlikely to be welcomed by most people, and retailers will undoubtedly pass this on to consumers, the true cost is actually rather small.

"That said, the rise is coming at a time when a lot of people are anxious about their jobs and the general rising cost of living, and all these factors combined are making financial matters a big worry for large swathes of the population."ADNFCR-1898-ID-800317104-ADNFCR

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