2.5% VAT rise to 'affect printers'

The Government's 2.5% VAT increase has spread concern among printers in the UK who fear that it could have a negative impact on consumer confidence.

According to the Federation of Small Businesses (FSB), over 70% of small firms will be adversely affected by the hike, with 45% of 1,600 companies surveyed predicting a decline in turnover and over 50% expecting mushrooming prices.

On January 4 this year, VAT permanently increased to 20%, a 2.5% climb on a year after tax came up to 17.5% from the short-term 15% figure.

Printers in the country have said that consumer confidence in the marketplace is most likely to be hit, in spite of sales seeing very little or no impact due to the VAT registration of customers.

Printing.com, a high-street printer firm, has however, chosen to differ in its viewpoint, expecting to see expansion in its outlets as a result of the VAT increase - which would require a number of small companies to flock for improved and updated devices and services.

Peter Wise, director at Minuteman Press Bristol, said: "The impact for us will be on the non-VAT-registered clients (mostly private individuals), which will be small.

"Of greater concern is the consumer market, which purchases products and services from our clients and will be hit by the VAT rise."

Stuart Mason, managing director at commercial printer The Ink Shop, said: "We'll be paying more for goods, but claiming that VAT back. The issue is more confidence in the marketplace."