Gail’s price check prompts Asda cuts

Price cuts made after the Government took 2.5 per cent off VAT are being redistributed at Asda stores.

The supermarket giant says it is using the savings to cut costs of essential foods and clothing.

Across the board cuts in VAT were introduced when the Government took 2.5 per cent off the tax to help fight the credit crunch last year.

But a shopper at Asda in Shaw, Gail Ditchfield, raised the issues when flowers, which had been reduced in price because of the VAT cut, went back to their original price.

Mrs Ditchfield, who is a volunteer at the Dr Kershaw’s charity shop in Shaw, said: “I asked a member of staff and she told me the Asda had put all the prices back up again.

“I also rang the store manager who said all price changes came from head office.”

An Asda spokeswoman told the Chronicle: “When the Government first announced its temporary cut in VAT, we immediately applied a discount to all ASDA and George products that were liable.

“Now we have had time to calculate the benefits of this reduction to our customers, we have discovered that we can target the savings more effectively by investing the VAT reduction into lowering prices on essential food items (many of which are not VAT-able) and on essential clothing.

“We are passing on the equivalent of the 2.5 per cent savings in full to our customers through these reductions and we have found that this is the best way to use the money to stimulate the economy in the way the Government intended.

“We have spoken to our customers about the changes we have made and they tell us that they would rather enjoy larger reductions on essential food and non-food items they have to buy week in, week out, than save a few pennies on one off items.”