On 22nd June 2020, Former Chancellor Alistair Darling urged the UK government to “boost consumer spending by cutting the standard rate of VAT,” according to the [Retail Gazette]. This move has reportedly been met with criticism by retailers who have raised concerns that the cut could “result in extra cash-handling that could increase the spread of coronavirus."
Since re-opening their doors on 4th June 2020, Britons have rushed to the shops. However, many stores have increased their contactless spend limit to £45, indirectly addressing consumer fears surrounding the press-spread myth that cash is not safe. The World Health Organisation was misquoted back in March which has instigated consumer fears of the virus being transmitted through cash, therefore, favouring cashless transactions.
The latest brand that has been accused of exploiting this myth is European fashion giant Primark. The brand, which has 188 stores in the UK alone, has reportedly objected to the VAT cut due to similar experiences in Germany which led to an increase in cash transactions in their stores.
