WEST YORKSHIRE companies have taken the recent VAT hike in their stride, according to a survey.

The latest Business Barometer from Close Invoice Finance showed that 44% of small and medium-sized firms in Yorkshire and Humber claimed the VAT rise has had no impact whatsoever on their business – with a further 48% saying the impact has been small.

Ian Seward, of Close Invoice Finance, said: “It’s heartening to discover that the majority of businesses polled aren’t experiencing any major adverse effects of the recent VAT hike, particularly given the fact that the findings of our survey in 2010 showed that 39% of SMEs in this region were expecting to find it difficult to cope. It seems, for many, those fears haven’t materialised.

“One in 10 SMEs in the UK previously stated that they believed the increase would put them out of business in early 2011, compared with one in 100 now.

“It’s reassuring to learn that these businesses, which are undoubtedly vital to our economic recovery, have been able to deal with the change.”

Asked how SMEs were managing to cope with the increase, 37% of firms in the region said they were passing the VAT rise directly to customers.

“It remains to be seen whether this will discourage consumer spending, meaning a decrease in sales, “ said Mr Seward. “So although there’s reason to feel optimism at the moment, small firms need to keep a close eye on their order books and should be looking at their cash flow to find a way to absorb some of the increase themselves.