Cutting VAT by 2.5% would be logistical nightmare and won't make any difference, say retailers

Daily Mail

"The VAT reduction will come into effect on Monday and is due to last for 13 months before going back up again in January 2010.However, the change will have only a small effect on day to day living costs as the sales tax is not applied to essentials such as food.At the same time, the Chancellor moved to cancel out the benefit of VAT reductions on petrol, alcohol and tobacco by imposing punishing increases in other duties."