Paula Owens has been scouring the High Street and dealerships to find out if Chancellor Alistair Darling’s VAT cuts will make a difference to shoppers

SHOPPERS in Liverpool saw only a slight drop in the price of small items thanks to the VAT rate cut which came into force yesterday.

However, those planning to splash out on a new car, an engagement ring or a high-end television could find themselves saving hundreds of pounds.

And Christmas shoppers who have resisted the temptation to start buying presents early will also benefit from the change.

As part of his pre-Budget report last week, and in response to the current financial crisis, Chancellor Alistair Darling announced that from December 1 the standard rate of VAT would fall from 17.5% to 15%.

Price tickets in stores around the city were yesterday afternoon being altered to show the new figures – with the 2.5% reduction included in the price.

Many prices remained the same as before on the ticket but were being reduced at the counter.

The chief executive of Liverpool’s Chamber of Commerce, Jack Stopforth, said: “I think it’s difficult to differentiate between that reduction and some of the general reductions on offer at some of the larger retailers anyway.

“I think it could be difficult for the customer to understand whether the VAT cut has been incorporated.

“Some smaller retailers are finding it prohibitive to have to change all their ticket prices – it is taking a lot of work and costing them money.

“I’m not sure this is enough to kick-start retail in a general way. I think most people will just decide to save their money or to buy cheaper imported products.

“But for the consumer this cannot be a bad thing – to quote a certain retailer: ‘Every Little Helps’.”

Anyone planning to buy a new car could save hundreds: a new Mercedes C-Class saloon which last week would have cost from £23,350 is now £22,857.

Fans of state-of-the-art technology can save £200 on a Bang & Olufsen BeoVision TV, which fell from a hefty £9,350 to £9,150.

Somebody planning to treat themselves to a top-of the-range watch could save around £100. A man’s Rolex Explorer II has fallen from £3,420 to £3,347.

And, for anybody planning to propose to their girlfriend, now could be the time to make a saving on a diamond ring, with a £6,500 one-carat platinum ring reduced by £139 to £6,361.