Who would a 2.5% drop in VAT be good for? Perhaps people buying big ticket items might benefit but I think (especially if it is relatively short term) that it will cause a massive problem.

I own a small retail beauty salon which is VAT registered and the dilemna I find myself in is this: Do I pass the saving on to the customer?

This might seem like an obvious one – yes, it’s only fair – apart from the fact that the average sale price is about £10-15 so the saving will be between 25-50p for the customer. And, I will need to print new price lists, pay for amendments to my website, reset all the prices in my CRM and reprice all the stock. These things alone will cost me about £1,000 and a fair amount of time to do.

I can understand that this measure is designed to kick start the economy, but with jobs still being lost and house sales not moving, is it actually worth it? Money has to make it’s way back into peoples pockets first before they start spending it surely?