The cut in VAT has proved to be an administrative nightmare that has failed to have the desired effect of boosting the sector, claim recruiters.

A recent survey from accountancy firm PricewaterhouseCoopers found that 88% of consumers said that the VAT cut had had no impact on their spending.

Peter Burgess, managing director at Retail HR, told Recruiter: “I think it was a complete waste of government money. If they had done nothing at all, the government would have been £12bn less in debt. From a retailer’s point of view, it has been a logistical nightmare. All it has done is create a headache in stores.

“It is a monstrously stupid idea. The money would have been better spent taking the money off employer’s national insurance making it cheaper to employ people.”

Kate McCarthy, managing director at McCarthy Retail Recruitment, adds: “It was never going to have an effect. It was the wrong decision at the wrong time. It probably cost retailers more to make the changes than it would have afforded them in sales.

“It is negilible and has not encouraged anyone to shop anywhere. I don’t think it has made any impact on sales or the retail economy.”