Sigh. Again.
British shoppers are paying more than their European
and American counterparts for a host of goods and services, according
to experts who are worried that many consumers are being left out of
pocket.
While the UK is cheap for clothing and
food, it is one of the most expensive places in the world to buy
computer games consoles, branded electronic goods, alcohol, rail
tickets and furniture.
Booze is easy to explain: it’s the taxes. For the rest it’s the price of land:
Maurice Fitzpatrick, an economist at Grant Thornton, said the United
States enjoyed significantly lower taxes and land prices – two key
reasons why goods there are so much cheaper. "Land is one of the key
factors in the cost of production," he said.
That’s caused by the planning system. All those lovely green belts, the way in which we insist that here is no ribbon development, or suburban sprawl. This is the cost of it coming back to bite us. Might be worth it, might not be, but worth identifying the source of the problem.
However, experts now believe many consumers are missing out. Even when
prices appear reasonable, there is growing evidence of a two-tier
economy in which bargains are available only to the smartest consumers
and those with access to the internet.
Quite, net retailers don’t need to pay for that expensive land.
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