VAT increase could mean higher broadband bills

Following the announcement by the new chancellor that VAT is to be increased by 2.5 percent from next year consumers are set to be hit with higher costs on their services, including their broadband bills.

In this week’s emergency budget the new Chancellor of the Exchequer, George Osborne, announced that as of January next year VAT would be increased by 2.5 percent, taking the level of VAT up to 20 percent. The move formed part of a package of measures put in place by the new coalition government to try and tackle the public deficit in the UK.

Officials are now warning consumers that the cost of their services are likely to go up once the new VAT increase kicks in, and many people may find themselves paying more for services such as broadband, which could have a significant impact on their finances. Whilst the level of VAT has only risen by 2.5 percent the increased charges on a wide range of services and purchases could make a big difference to consumers.

Officials are now urging consumers to think about whether to take out a longer term contract when taking out broadband so that they will not have to cope with the cost increases as early as those who take the services out just as the VAT increase kicks in. Consumers should hunt around for broadband deals that suits their needs and offers affordability.

The deputy Prime Minister, Nick Clegg, is now facing an uprising because he had promised to fight against VAT increases previously but has now sanctioned the VAT increase as well as benefit cuts.

Source – Mirror