LOCAL authorities must pass on the VAT cut announced in last week’s Pre-Budget Report to help sustain small businesses and the local economy over Christmas, a business support organisation has said.
The Federation of Small Businesses (FSB) said it is concerned by reports that many local authorities are not intending to pass on the 2.5 per cent VAT reduction on their parking charges.
Colin Stratton, FSB regional chairman for the North- East, said: “Small businesses are dependent on local authorities to provide sensible and well-balanced parking policies that allow people to shop in town centres without being hit by unfair parking charges.
“Access to quality parking provision is a significant factor in store performance, and local authorities need to realise that parking is an essential service and not a shortterm revenue grab.
“The failure of some local authorities to pass on the VAT cut will blight many small businesses at one of the most important times of the year – Christmas.
“We urge local authorities to encourage consumers to keep trade local and make parking free over the festive period.”
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