Research from Auto Trader shows that Britons are unaware and unprepared for the rise in VAT
- 12 million Britons unaware of the rise in VAT in 2010
- 30% say they will be forced to take a closer look at spending habits
- 55% believe the increase is an attempt to make money from taxpayers
London, 26 November 2009 – New research from Auto Trader reveals that the imminent rise in national VAT will have a significant effect on consumers in 2010, with 30% of people admitting they will be forced to reconsider their spending habits.
Confusion over the rise in VAT
National VAT, currently at 15%, is expected to return to the usual rate of 17.5% next year, yet the research found that 12 million Britons are unaware of this. The results also highlight a lack of consumer awareness over the impact the rise could have, especially on large purchases. Of those intending to buy expensive items such as televisions, holidays or cars, the majority (55%) did not plan on bringing these forward before VAT increases.
The research also exposed a lack of trust in the government’s intentions, finding that 55% of people believe the increase is an attempt to make money from taxpayers. In addition, one in 10 people expect the government to raise VAT to 20% instead of returning to 17.5%. Those questioned also felt the increase would backfire in the long term, with a quarter of people believing it will become harder for Britain to come out of the recession.
Millions could be lost on car sales
Those planning on purchasing cars are in for the biggest shock as the rise in VAT is not the only threat to consumers’ wallets. One in 10 people are unaware that the government’s car scrappage scheme, which offers £2,000 towards the cost of a brand-new vehicle when trading in a vehicle over 10 years old, comes to an end in February. With one in 20 people intending to buy a car at some point in the next three months, delaying that decision could mean UK drivers miss two opportunities to save money.
Matt Thompson, Marketing Director at Auto Trader, says: “The impending rise in VAT and the end of the car scrappage scheme make a compelling case for bringing your car purchases forward to before Christmas. Our research has proven that the public is still lacking much of the critical information on both proposals and we are highlighting these issues so that consumers can act now.”
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Notes to editors:
- The survey was carried out on 6th November 2009 among a statistically valid cross-section of 1530 UK adults by Opinion Matters.
- According to the Office of National Statistics, in 2007 there were 36,203,800 people aged between 16 and 59 in the UK.
About Auto Trader:
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AutoTrader.co.uk is the UK’s no 1 motoring website, with over 10.3 million monthly unique users, who carry out over 106 million searches on new and used vehicles*. The brand is building a competitive position across all effective channels including online, mobile and magazine. (*Source: Auto Trader Audit, January 2009).
AutoTrader.co.uk is owned by Trader Media Group, one of Europe’s largest specialist multi-media groups and provider of market leading websites and their associated magazines, including Top Marques, Bike Trader, Truck & Plant Trader, Ad Trader, Motorhome and Caravan Trader, Farmers Trader – all with the largest reach in their sectors, through web visitors and magazine readership.
Trader Media Group operates in the UK, Ireland, Italy and South Africa. The Group is looking to expand on its winning formula: giving trade customers the opportunity to choose all effective channels to market; building the service and relationship with dealers and manufacturers; and strengthening its portfolio of automotive and specialist classified titles.
Trader Media Group is jointly owned by Guardian Media Group and Apax Partners.
Contact details:
Heather Forty
PR for Auto Trader
0207 608 4658
