AUGUST TRADE NEWS Bad weather blamed for shopping centre delay Chester council  not supporting retailers New rules 'won't help save retail centre' Irish shoppers look abroad for bargains British consumers spend more on beauty products Yorkshire town gets behind plastic bag reduction scheme Rising obesity prompts calls for VAT rule changes eBay restructures fee scheme to make fixed-priced sales cheaper Online sales boom despite slowdown Music retailer goes out of business Matalan named and shamed for how it treats wholesalers BCC slams higher parking charges proposals Booming wholesaler moves to new warehouse Market traders told to only 'shout quietly' London's retailers show growth despite gloom Counterfeit goods dealer sentenced to prison UK's smallest town protests supermarket plan More retailers and wholesalers going out of business Online retail sector predicted to expand rapidly Henley retailers protest development plans Retail sales continue to slow Tiffany appeals US court's eBay ruling Report criticises electricity suppliers' treatment of small businesses MK retailers protest Tesco expansion plan Yorkshire retailers protest supermarket move Manchester wholesaler shut down over fraud worries Businesses welcome plans to reduce red tape Rate hold accepted by small businesses Internet sales put pressure on the high street Huge counterfeit goods haul in Somerset Irish entrepreneur online retail plans Wholesaler sector set to struggle Staycations could help British retailers Retailers 'gloomy' about economic outlook Retailers report footfall continues to decline as consumers cut back Hidden door reveals huge counterfeiting operation in Manchester shop No recession for the UK this year East London wholesaler goes into receivership London mayor reveals plans to support small retailers Toy retailers defy gloom Retailers urged to embrace online sales Trade News Archive August 08 July 08 June 08 May 08 April 08 March 08 February 08 January 08 Subscribe to our newsletter   Go to The Wholesaler UK Directory 26th August 2008 Rising obesity prompts calls for VAT rule changes Rising levels of obesity among children in the UK mean that the government should consider changing the limits about VAT exemptions on clothing, the British Retail Consortium (BRC) has said. Currently, clothes designed for children under the age of 14 are exempt from VAT. Which items are covered by the rules are determined by their size. However, the Times has reported that the BRC is warning that rising levels of childhood obesity mean that some children under the age of 14 are now too large to wear VAT-exempt clothing. As a result, the BRC has called on the government to rethink the rules that determine VAT exemptions. Jane Milne, the director of business environment at the BRC, explained to the paper: "For so far back in time there has been zero VAT on children's clothing as part of government policy to support families. But the point is with obesity, and better nutrition levels in general, children are getting bigger. "The upper limits have to change so that more children's clothing falls within the zero VAT band." Recently, the Institute for Fiscal Studies suggested that the government should consider scrapping the zero and reduced VAT rates to create a 'fairer' taxation system.   (c) 2008 Adfero Ltd. Sponsor of August Trade News Sony TV Brackets     Comment on this news story To comment on any story please click on the above link, put the story title in the subject line and please provide your name, trading style ie. retailer or wholesaler and the town where you trade.