Many shop prices still show little sign of VAT cuts but explanations abound BY Diana Geddes A week after the coming into force of the 2 per cent cut in value-added tax announced by the Chancellor of the Exchequer in his min4iBudget, there is little or no change in the prices of goods in many shops. Most shopkeepers said they were still waiting for new stock with VAT-adjusted prices. In the meantime they were taking lip to 2p in the pound off old stocks, or making large reduc- tions on selected items, When I revisited a south London shopping centre yester- day I found that prices had changed little from what they were last Monday when I made my first check. But there were changes in explanations for failure to make reductions. Some shop managers who -had said they were waiting for in- structions from their head office or that they had not had time to change price tags, had gone through the manufacturers' re- vised lists and lowered prices on a wide variety of cheaper goods. One Co-operative store, for example, which had cut prices only on cigarettes and soap powders last week, was offering reductions on sweets, pet foods, mixer drinks, chocolate biscuits, some soft drinks, ice-creams, tights and pot plants. A wine shop, which made no reductions last week, had cut spirits.by Sp to 8p a bottle and wines by lp to 2p, but the prices of beer and mixers were unchanged. changed. Other shops were clearly not intending to make any reduc- tions. A publican who.said last week that he was waiting for new stock before making any cuts- told me yesterday that prices were to go up on both new and old stock. The manager of a men's hair- dressing saloon, offering a 15p shampoo and a 35p cut, said they had never charged VAT Although some shops said they had made reductions, it was clear from the notes I made before the VAT cut came. into force that they had not. At a radio shop, where I was told that reductions of about ?2 had been made on all goods, I saw a gramophone I had seen there 10 days ago still being offered for ?189.70. Many shop prices still show little sign of VAT cuts but explanations abound