By Lewis Dyson

Businesses in Sittingbourne gave mixed reactions after VAT was increased to its highest ever level.

The amount of tax shops and customers have to pay for their goods went up from 17.5 per cent to 20 per cent last Tuesday.

Shoppers are widely expected to tighten their belts but some traders are confident going into 2011.

The VAT hike is likely to bring the price of beer up by a few pence but bar supervisor at The Bull in High Street, Sittingbourne, Quinn Brierley, is confident drinkers will not be put off.

"People will always complain about prices but people will drink beer regardless," he said.

"January is always a slow month but things will pick up once the weather gets better."

Michael Prizeman, manager of Brittain and Hobbs, Roman Square, Sittingbourne, is confident the VAT hike will have little effect on business as the electronics store would be keeping its prices the same.

He said there was a rush in the store before the New Year, but added: "I don’t know if you can put it down to the VAT increase because it always gets busy this time of year."

Some owners are worried how the rise will affect buyers’ attitudes.

Andrea Don, owner of children’s book shop Nickelbooks in High Street, Sittingbourne, said: "With people spending more on things like shopping and petrol, they will look at things they can cut out. It is a shame because books are very important especially for children."

Mrs Don, who is also a member of the Sittingbourne Retail Association, said the tax increase is coming at a bad time for already beleaguered Sittingbourne businesses.

She said: "It is going to affect those with lower incomes more, not like income tax which is based on how well you are doing."