Martin Scott, KPMG
Media playback is unsupported on your device
Video

VAT increase will 'mask' price rises according to KPMG

The increase in VAT from 17.5% to 20% that will come into effect next month will be used to "mask" more extensive price rises according to accountants at KPMG.

They claim almost two thirds of retailers and consumer product manufacturers plan to increase their prices by more than the planned VAT hike in January.

Martin Scott from KPMG told the BBC why he believed retailers would raise prices by more than just the VAT hike next month.

  • 14 Dec 2010
Go to next video: UK growth 'to slow down in 2011'