Business leaders and MP's have slammed the re-introduction of the 17.5% VAT rate during the New Year period as 'utterly thoughtless' as it will hit retailers and consumers at the worst possible time. Conservative chairman for the business and enterprise select committee, Peter Luff, said: 'I was against the cut in the first place and it should have never have been madere-introducing it at the time of January sales would be the wrong time.' He added: 'It could not be more calculated to hurt retailers. It is utterly thoughtless'. The temporary cut of VAT to 15% was introduced in the Chancellor's pre-Budget speech in a bid to help retailers and consumers weather the economic storm. Alistair Darling had made it clear that it was a short-term measure and the rate would be returned to its normal amount of 17.5% come 1 January 2010. However, the slash in VAT has helped households save an average of £475 and the looming return to 17.5% will cause an 'administrative nightmare' for retailers and will hit poorer households hard, The Daily Telegraph reports. Sir Stuart Rose, chairman of Marks & Spencer and a member of Gordon Brown's business council said: 'We all want to be able to focus on delivering a fantastic Christmas and New Year for our customers, not on administration. This will be an unwelcome distraction and I urge the government to delay until mid-January at least.' Sir Philip Green, owner of BHS and the Arcadia group, highlighted the problems retailers will face when thousands of shoppers will 'bring back a mountain of gifts after Christmas asking for a refund. At what rate do you give the refund? It will just add to the confusion.' Despite urges for a delay in the VAT return date, Darling is standing firm on his decision. His spokesman said: 'The government's intention has always been that the rate of VAT will return to 17.5 % from 1 January, 2010.'