Some shopkeepers fear it could be "too little, too late" while others are pleased action is being taken.

Pamela Hurcombe, who owns Gladstone Bags in Warwick Street, with her husband Eddie, said: "I think the problem's going to be that the public will assume it's 2.5 per cent off the total price of the goods, but it's not.

"It's 2.5 per cent off the total VAT.

"The amount off will actually be quite small and I think people will be shocked by that.

"Raising the lower tax bracket would have been more helpful.

"It has actually left me feeling quite uneasy and I have a feeling it will cause a certain amount of consternation."

Better than nothing

James Frost, a partner at Jewelworks in Montague Street, said: "I don't think this change will make a big difference, but it's a step in the right direction.

"At least they are trying something rather than doing nothing.

"Our big problem is that the council has made us take down our A board and also there's parking, which is keeping people away from the town."

Wendy Frost, another partner, added: "This is the worst we have ever known things and I think it could be too little, too late."

Early sale

The independent, family-run store has started its sale early.

At Methven, in South Street, the drop will not have much effect as books are not subject to VAT.

The only products which qualify for the discount are audio books.

Senior book seller, Mark Hatton, said: "Darling just does whatever Brown tells him and he doesn't know anything about economics.

"It's not going to have a major financial knock-on for us but if books had been subject to VAT, it probably would have totally sunk us."


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