The chancellor's 2.5% cut in VAT has had little impact on consumer spending, with 88% of those surveyed by PricewaterhouseCoopers saying it was insignificant compared to other factors such as a reduction in income. The survey of 2,000 consumers revealed that only 8% had changed their spending patterns due to the cut to 15% and only 3% of them said they were encouraged to spend a lot more. Tax partner at PwC, Stephen Coleclough, said: 'These figures show that, despite it being designed as an economic stimulus, the vast majority of consumer's spending has been unaffected by the VAT cut'. Regardless of pleas from retail chiefs to extend the VAT cut till after the New Year period, chancellor Alistair Darling has decided that the return of the normal VAT rate, 17.5%, on 1 January 2010 will still go ahead. Coleclough added: 'The rest of the year will demonstrate whether the cut can still have the desired effect. It will be interesting to see whether consumer spending is affected by retailers potentially bringing forward their New Year sales in anticipation of a VAT increase in January'.