Recent VAT and Fuel Price Increases Favour Online Shopping in the UK
With the recent price increases in the UK the country is witnessing the worst downtime ever. These adverse economic circumstances are forcing the UK shopper to save money on fuel and traveling costs and save money by finding online bargain shopping deals.
Brits are facing the biggest increase ever in fuel prices since the records began with over 6.13 pence a liter increase within a month and pushing the current price of petrol to 128.27. The masses in the UK simply find these price increases outrageous and its making it extremely hard for them to take money out for fuel and spend on luxury goods.
An average shopper in the UK is forced to try everything they can in order to avoid taking out their cars on the road in order to avoid the extra cost of fueling their cars. This has lead to a sudden increase in online shopping as more and more buyers now seem convinced that online shopping is a great way to combat the ever rising living costs.
The UK economy was already in doldrums when the government increased the VAT from 17.5% to 20% and now the fuel price increases are making it even worst. According to many reports and surveys, high street shops and small businesses in the UK are the worst affected from these government policies. They also feel that the rise of online shopping is likely to create serious damages to the small retailers.
In the recent weeks some of the biggest retailers in the UK have also reported the difficulties they are facing due to the lack of interest shown by the shoppers in the high street malls and stores. The names include HMV and Westfield who have come forward and announced major cuts in order to control their overheads. HMV has also announced their plans to shout down 60 out of their 600 shops. These strong economic indicators suggest that online shopping will increase to record levels during the year 2011.