CUTTING VAT will not help shoppers or shopkeepers this Christmas, according to Worcester retailers.

Many of the city’s shopkeepers are unimpressed with the Chancellor Alistair Darling’s 2.5 per cent VAT cut which will come into force on Monday.

Consumers may not even see the effects of the cut because many retailers bought their Christmas stock months in advance with 17.5 per cent VAT added.

Following the tax cut shopkeepers will now have to decide whether to take the 2.5 per cut on their profits or charge the tag price with an unchanged tax rate.

Sarah Bicknell, owner of Reefs clothing and Mission 2B footwear in the CrownGate Shopping Centre, said: “Anything we have bought from suppliers before December 1 is at 17.5 per cent and anything else afterwards will be at the 15 per cent rate.

“I don’t think there’s much interest from customers anyway, particularly as we sell clothing so the savings will be a few pence.”

Ian Watkins, manager at model and collectables shop Antics – a three store chain, in St Swithins Street, said shopkeepers’ margins were already tight without taking a voluntary hit on VAT.

“During the Olympics, China had to cut emissions so it slowed factory production, which means our supplier costs have gone up by as much as 20 per cent,” he said.

“We only have a small profit margin and the prices are going to have to go up because of increased costs and the weak pound.”

Rick Knowles, owner of Knowles of Worcester, which has a luggage and sports shop in Broad Street, said the cut was “a drop in the ocean”.

Mrs Bicknell and Mr Knowles are among retailers who received a letter yesterday from Her Majesty’s Revenue and Customs explaining the VAT reduction.

Hereforshire and Worcestershire Chamber of Commerce business leaders agreed the VAT change would do little to help small retailers.

Chris Harvey, head of policy and representation, said: “We hope it works but I cannot see the things that ought to have happened.

“VAT is a good example – it’s only 2.5 per cent off the tax, not even the goods.”

He said the extra administration of changing labelled prices on stock was something many small retailers with limited staff could do without.

“We are rather disappointed and the chancellor could have done much better,” he said.

Supermarkets Tesco and Sainsbury’s announced they would implement the VAT cut on some goods from tomorrow while DSG international, owner of Currys and PC World, passed on the full cut on Monday.