Oh the irony. Even if Alistair Darling’s 2.5 percentage point cut in VAT had prompted consumers to open their purses this week, they would have been snapped firmly shut again only days later when two household retail names went into administration.

The resultant media furore over the demise of Woolworths and MFI would only have cemented the consumer view that the economy is well and truly scuppered.

And anyway, who is the Government trying to kid? Does it really anticipate that the small cut in VAT will be enough to tempt people to buy those little luxuries they have been resisting? To put it in perspective, the prospect of buying a£140 dress in Whistles for£136.50 is not going to make someone think: “To hell with it” and whip out the credit card.

In short, the Government’s big announcement is not going to make people buy any more than they are already… which is not a lot at the moment.

Leaders at the major fashion retailers this week wasted no time in expressing their views on the matter. Next chief executive Simon Wolfson said it was an extraordinary decision that “defies all economic logic”, while Marks & Spencer executive chairman Sir Stuart Rose described the move as a “logistical nightmare”. They have all united for crisis meetings to work out how to proceed and have spent the last few days scrabbling around to alter their systems and implement the changes as soon as possible.

Nevertheless, the decision has been made, so retailers must now look at the positives. And, if you look hard enough, there are a few glimmers of optimism.

Some fashion retailers are already launching opportunistic marketing promotions that will catch shoppers’ attention. Boden, for instance, is launching a VAT-free promotion that it is also applying to childrenswear – a category exempt from the tax. The White Stuff, meanwhile, has promised to donate the 2.5 percentage point reduction to charities.

And although this VAT cut isn’t going to make people flock to the shops, it will be viewed as an added bonus. It’s like when you go to the supermarket and your receipt tells you that purchasing various offers of the week has saved you about£1.80 off a£80 weekly grocery bill. It’s not exactly going to make you whoop with joy, but it’s better than nothing.

The fashion retailers who have made the decision to deduct the 2.5 percentage points at the till can now make a point of telling customers they have saved an additional few pounds. It’s not going to solve their financial worries, but you never know, it might put the tiniest, briefest of smiles on their faces. And who doesn’t need that at the moment?

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