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An overwhelming 81 per cent of UK retailers believe the coalition government will increase VAT in next week's budget announcement, according to recent research from More2.
Over two thirds of retailers (68 per cent) are planning on passing the potential increase on to their customers. One in 10 is claiming that if a rise occurs they will absorb the price increase.

9% would consider counteracting the increase by cutting marketing budget. 8% would potentially look to downsize stores and a further 8% would reduce training.

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