Retailers warn VAT cut could heighten coronavirus risks

Glasgow high street

Senior retailers have raised concerns that any temporary cut to VAT could result in extra cash-handling and increase the risk of spreading the virus.

In a call between high street retail bosses and the Department for Business, Energy & Industrial Strategy, discount fashion chain Primark warned against the government slashing VAT to stimulate the economy, according to The Times.

The high street giant, which has stores all over the world, said that since VAT had been cut in Germany in response to the pandemic, staff at its 27 stores had reported an increase in cash usage.

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