VAT Increase to 20 Per Cent as of Today

The video discusses the recent VAT increase and its impact on consumers and retailers. It highlights how different products and services are affected by the tax change, with some items like potatoes remaining unaffected while others like crisps see a price rise. Consumers express mixed reactions, with some indifferent to the change and others concerned about rising costs. Retailers like Morrisons are adjusting by reducing prices on certain items to cushion the impact. The video also touches on the additional burden on motorists due to fuel duty increases. Despite the VAT hike, shopping activity has increased, indicating resilience among consumers.

What was the percentage increase in VAT mentioned in the video?

• 1%

• 2.5%

• 5%

• 10%

Which of the following items does not attract VAT according to the video?

• Potato crisps

• Potatoes

• Mobile phones

• Fuel

How do consumers generally feel about the VAT increase on mobile phones?

• They are excited

• They are indifferent

• They are very upset

• They are confused

What strategy are some retailers using to help customers cope with the VAT increase?

• Increasing prices

• Reducing prices on certain items

• Offering free delivery

• Extending store hours

What additional challenge do motorists face besides the VAT increase?

• More traffic congestion

• Increased fuel duty

• Higher parking fees

• Stricter emission regulations