FOR the past few weeks, we have endured snow, snow, and more snow. We’ve all struggled to get the car moving (well, at least I have – rear-wheel drive), and public transport has never been so popular.

The sales of outdoor clothing and thermals have gone through the roof, while footwear – Wellington boots rather than Jimmy Choo or Louboutins (very nice shoes) – is walking off the shelves.

But will we change our habits as we enter the new year?

With the announced VAT rate rise due to take effect on January 1, which will see an increase from 17.5 to 20 per cent, will we stop spending and think hard before we make purchases?

How will businesses cope with the changes – will they pass on the cost or will they have to absorb the rise? It’s not just the price increase but also the time taken to administer the changes and alter pricing, especially in the retail sector, that will be challenging. Your January sale bargain could actually cost you more.

HM Revenue and Customs (HMRC) has produced a document to help businesses implementing the changes, A Detailed Guide for VAT-Registered Businesses. At 50-pages long, I’d expect it to be detailed.

But what happens to all the goods that are zero-rated or attract a lesser rate of VAT?

Do we expect to see a rush on recategorising of VAT exemptions in order to beat the increase? Will we see a run on Jaffa cakes – is it a cake or a biscuit? If you are talking to HMRC, it’s a cake and you pay less VAT.

The Chancellor is hoping to recoup an estimated £13bn a year from the 2.5 per cent increase.

And as the 2.5 per cent reduction last a year was hoped to stimulate the economy, will we see the reverse effect happening due to the rise?

The real worry is that we stop spending, especially on larger purchases, and look to hold onto cars and houses a little longer.

The construction industry and house builders have already traded through extremely difficult trading conditions, so will this add to the misery?

Some businesses are using the VAT increase to boost pre-Christmas sales, telling customers to beat the price increase in a bid to attract customers through their doors. After all, a 2.5 per cent saving on some purchases is well worth pocketing.

■ Joanne Fryett is head of member relations at the North East Chamber of Commerce (NECC).