Rate of VAT cut to 15%
Release date: December 1st 2008

In his pre-Budget statement (November 24th) the Chancellor, Alastair Darling, announced that the standard rate of Value Added Tax would be cut from 17.5% to 15%, as of December 1st 2008.

It is estimated that the change in VAT rate will cost the Treasury around £12.5bn in lost revenue and save the average tax-payer roughly £170 a year. The 2.5% cut will last until 31 December 2009. Many major retailers estimate that the total cost on the High Street will be some £300m over the course of the next two years, as companies face the expense of implementing the change, and then reverting back again, possibly to a higher rate when the measure is reversed.

Nicholsons will be passing on the reduced rate to customers in full. However, the logistics of actually changing the prices quoted in our catalogue, on the website, and around the nursery would simply be too costly to implement straight away. Therefore, the published prices will remain the same for the time being, but the amount charged at the till, or by invoice, will be calculated at the correct figure of 15%.

We apologise for any short-term confusion this may cause, and assure customers that we will be doing our utmost to make the situation as clear as we possibly can. If you have any queries relating to prices and VAT, please don't hesitate to contact us.