Scarborough businesses call for reduction in VAT to tackle inflation
The inflation rate has hit a new 40-year high at 10.1 percent
Some businesses in Scarborough are calling for a reduction in VAT to tackle the rise in inflation.
Last week it was announced that the rate is now at 10.1 percent, which is a new 40-year high.
The cost of basics like bread, milk, fuel and other essentials like toilet roll and deodorant have contributed to the increase.
Janet Jefferson, who owns a train shop and is President of Scarborough's Chamber of Trade and Commerce, said: "I think they're all keeping pace with inflation or trying to. I suppose in some sectors you can be more selective as to what you buy to sell on. If you're a specialist trader than you go to the brands that people want, so obviously you're controlled by their prices in which case that would be your profit.
"We'd love to see a reduction in VAT. I think 20 percent is quite a hype nowadays and I quite often write to our MP and further on to Government. I think if there was a five percent reduction in VAT that would make a difference to all businesses because in some cases you'd probably are going to have to stand some of the loss.
"It wasn't really retail per se that benefitted from that reduction in VAT during the pandemic. I think in certain sectors it was good and it proved to be good for them but I think in turn, we should look at all aspects of retail and reduce the VAT as an encouragement and also confidence in the industry.
"This is one way I think that we can help ourselves, especially our retail members, in certain aspects is to reduce VAT. They say they're going to reduce the VAT on utilities, well that's only five percent in the first place, but 20 percent is quite a lot. It's a big factor in the whole of the tourism industry.
"We all benefit from people coming to Scarborough in whatever business we're in. We're a destination so everybody no matter what business you are should benefit from the visitors that we've had. Scarborough has a lot to offer and the coastline itself so we welcome all of our visitors but we want to be competitive as well."