UK VAT rise will stimulate economy and create jobs - Minister O'Keeffe

The Minister for Enterprise, Trade and Innovation, Batt O'Keeffe TD, has said the decision today [Tuesday] by the British Government to increase its VAT rate, coupled with the decline in value of the euro against the sterling pound, will stimulate our domestic economy and create jobs.

Minister O'Keeffe said: 'The move will increase consumer demand and generate retail sales at a time when we need every possible support to create jobs and build for economic recovery.

'The increased VAT rate in the UK, allied with the falling value of the euro against the pound sterling, will discourage cross-border shopping and incentivise more of our consumers to spend their money in this jurisdiction.

'The move will severely curtail the loss in revenue to our economy as a result of cross-border shopping which was estimated to be worth up to €600 million.

'It also has very positive implications for our exports and our Exchequer taxation receipts.

'The economic fight-back is on - and we must now shop locally and think globally.'

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For further information please contact:

Bernard Mallee, Press Adviser to Minister Batt O'Keeffe, Department of Enterprise, Trade and Innovation, on Tel: +353 1 631 3944, Mobile: +353 87 9173022, Email: bernard.mallee@deti.ie