business

Shopping exodus North might be coming to end

Finance Minister Brian Lenihan claims number will decline following British budget By Staff Reporter - 05/11/09

Shopping exodus North might be coming to end

ABOUT 250,000 households in Ireland are now travelling to the Northern to do their shopping, according to figures released last week from the market research group TNS. The figure is up by 50,000 on the same statistics for last year.

 

Informal research carried out by the cross border business development body, InterTrade Ireland, suggested that the proportion of southern-registered cars at four retail centres in Newry, Banbridge, Enniskillen and Strabane had increased from 50 to 70 per cent since the summer.

 

Meanwhile, Ireland’s Finance Minister, Mr Brian Lenihan has said there will be no repeat of last year's exodus of southern shoppers to Northern Ireland in the run up to Christmas.

 

Irish retailers lost out in the festive season last year as hundreds of thousands travelled North to avail of cheaper goods and a lower VAT rate.

 

However, Mr Lenihan said the British VAT 'holiday' was coming to an end. He added he would be able to react to the British budget as it was due first.

 

"We didn't know last year that the British were bringing down their VAT rate, but at least this year the British budget is first, so I will study closely what happens before I make any decision," Mr Lenihan said.

 

The UK VAT rate is set to return to 17.5 per cent from the current 15 per cent on January 1 2010. Mr Lenihan said: "People are free to travel to Northern Ireland.

 

"Just appreciate that, in a very difficult time, any tax you pay is not supporting our state."

 

Mr Lenihan also told the paper that "big" price reductions in the Republic within the last 12 months meant that shoppers were not guaranteed a better deal in Northern Ireland "in all cases".

 

But despite falling prices south of the border, southern shoppers have continued to vote with their feet.

Back to top

Related Articles

03/09/2010 - Win All-Ireland Football Final tickets

29/08/2010 - Wrong decisions by Ref costs Lilywhites

27/08/2010 - Kildare unchanged for Semi-Final Clash

25/08/2010 - Gilroy proud of Dublin players

Privacy Policy. About The Irish World. © Irish World Ltd 934 North Circular Road, London NW2 7JR Tel: 020 8453 7800

Site by rubbaglove