Wednesday, 5 January 2011

Cost of expensive things rises due to VAT increase, newspaper discovers

"The VAT increase has been called a “tax on London luxury” as the cost of having fun in the capital — from a cocktail to a night in a hotel — rises as a result of the tax rise.

Londoners will notice the difference in their cost of living from the moment they order their first latte of the day to a late night drink before bed.

Third Space gyms in Soho, a favourite of celebrities, has raised its annual membership by four per cent from £1,240 to £1,290.

Most “London luxuries” will be going up in price significantly. A box of limited edition Cuban Cohiba cigars at Tomtom in Belgravia will rise from £424 to £438.

At Huntsman in Savile Row, a bespoke medium-weight two-piece suit cost £4,295 before the increase, but now costs £4,386.

Luxury goods maker Mulberry said its new Tillie shoulder bag had gone up in line with the VAT rise from £795 to £812."

A single mother of four from Enfield, scraping together enough change to get the bus to Aldi for her family's weekly shop, said: "I find it deeply upsetting that bankers will now have to pay an extra £68 a year to smoke Cuban cigars while strolling on treadmills in Soho."

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