The day that VAT will change has been pushed back. But don’t get too excited.

It is to move by one day only, to January 1. Not quite the victory that retailers were hoping for – more of a damp squib. However, the situation is still red-hot, with retail tycoon Sir Philip Green leading the campaigning.

Yesterday, Green spoke on BBC2’s Working Lunch programme, saying that VAT is “the single-most important thing” threatening retailers’ ability to trade through the recession.

When VAT was reduced to 15 per cent on December 1, retailers broadly welcomed the move, but there were grumblings that it would have little effect on customer spending patterns.

However, faced now with the increase, the prospect of having to introduce higher prices to picky customers – just as fashion retailers are grappling with emerging inflation and the expiration of hedges – is a very real concern.

Add to that fears that the change will be implemented earlier – an early General Election could see this happening – and at a higher level than before the reduction, and the issue should be at the forefront of everybody’s mind.

The Government’s biggest issue – aside from whether to claim back for cleaning the moat or not – is how to reduce the national debt mountain.

Inflation is one possibility and clawing it back through a series of spending cuts or tax raises is likely. VAT is likely to be a tool to achieve this. The reduction to 15 per cent will cost £12.5bn in a full year alone.

So retailers need to make themselves heard and back those who are fighting their corner on such issues.

It can be successful: this week, retailers can celebrate some valuable victories.

On Monday, the Lords voted in favour of an amendment to the Business Rates Supplements bill, allowing all supplementary rates introductions to be approved by affected businesses.

The move should be welcomed, although the bill has yet to be rubber-stamped as it heads back to the Commons. However, it does not include the Crossrail Levy which, in its current form, can be introduced by the GLA without businesses’ consent.

Also, this week the Government has backdated eligibility for its credit insurance scheme to October. Previously, the £5bn top-up scheme – where retailers can get government-backed insurance to restore withdrawn cover – was open to those retailers whose credit insurance cover had been pulled from April.

While again not to be sniffed at, the British Retail Consortium argues that it should be pushed back further to last April, when the majority of retailers’ credit insurance woes began.

Although these developments represent steps in the right direction, they are not going far enough to help embattled retailers to stay fit in these sickly times.

The Government – whichever party ends up in the driving seat – needs to go the extra mile if it is to keep the retail sector, integral to the vitality of the economy, in shape.