Sir Philip Green's Arcadia Group has released a statement on behalf of a group of the high street's most powerful retailers confirming they will pass the VAT cut onto customers.
Arcadia, Mosaic Fashions, Bhs, Marks & Spencer, New Look and Next all confirmed in the statement they planned to pass the 2.5% VAT cut on to customers on Monday, or soon afterwards.
The group of retailers covers the Topshop, Topman, Wallis, Dorothy Perkins, Miss Selfridge, Evans, Burton, Bhs, Oasis, Coast, Karen Millen, Warehouse, Principles, Shoe Studio Group, Jane Norman, New Look and Next fascias.
The statement said: "Following the recent announcement reducing VAT from 17.5% to 15%, equating to a price reduction of 2.13%, we are pleased to confirm that it is our intention to pass the benefit of this reduction onto our customers."
The price reduction will be given on standard rated product and will be applied on, or as soon after Monday December 1 as possible.
The statement added that this would, "allow for the complexities of implementing the changes required."
It is unclear how the price cuts will be implemented, however many retailers are expected to take off the discount at the till point rather than by re-ticketing stock.