VAT goes down by 2.5% today. Because these changes have happened quickly, retailers have found it difficult to update all their prices in time. There was a bit on the news this morning about a shop which is coping by offering a 3% discount at the till. There was some technical reason why this was easier than a 2.5% reduction on thier system.

Thing is, a 3% reduction in price would occur if VAT was reduced by just over 3.5%. The actual reduction in price should actually be closer to 2.1%. I like to begin my Monday mornings with a bit of mental arithmetic.

So, if you are in a shop today, and you get a 3% discount, then you're getting a particularly good deal.