The IW Council’s confirmed it has been applying the new lower VAT rate since 1 December. The rate dropped from 17.5% to 15%, following an announcement by the Chancellor.
The authority says some charges, such as payments at leisure facilities and parking meter charges, have been more difficult to change. It says it “has considered the relatively small impact on the consumer against the administrative costs of changing the prices…[and]…rather than increase administration costs, the Council is currently reviewing its fees and charges in view of the economic downturn as part of its budget strategy for 2009/10”. In a statement, County Hall says it “is unlikely to increase many of its fees and charges from 1 April 2009, thereby passing on a higher benefit to local consumers at that point, without incurring additional administration costs.” It says the move is in line with many other local councils.