A rise in retail sales during October was a result of marketing by companies rather than the VAT rate cut announced by the chancellor, it has been revealed.
Donald MacLeod, head of Sainsbury's credit cards, believes that an increasing number of shop sales and extra discounts in the run up to Christmas are encouraging people to spend.
He also claims that 2.5 per cent VAT does not translate into a 2.5 per cent reduction in price and therefore shoppers are unlikely to be encouraged to buy items.
"For your Christmas shopping, it may be that if you are going to buy it on the Saturday you might delay that purchase for 48 hours, but I don't think it is going to make the difference of buying something or not buying," Mr McLeod added.
Research carried out by Research Plus on behalf of Sainsbury's found that by the end of November, six per cent of people have already spent £600 on Christmas shopping.
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