Chancellor of the Exchequer George Osborne’s announcement of a 2.5 per cent increase in VAT (from 17.5 per cent to 20 per cent) wasn’t exactly a decision greeted with joy when the news was first reported back in June. Businesses and consumers alike produced a countrywide collective groan.The action was taken as the government seek to plug deficits in the country’s budget.With the January date, from which the hike comes into effect, quickly looming large the general message is make any potential substantial purchases before January 1st.Electrical supplies, classed as non essential luxury goods such as computers, televisions and lighting systems are amongst the items that will be hit the greatest by the hike in VAT.The jump in the rate of VAT paid on electrical supplies should act as an incentive for many consumers to try and get in the last minute purchases and what could be considered the last type of bargain of its kind.While big items such as freezers and washing machines will because of their high cost undoubtedly get attention when they rise in price, even items considered less significant such as light sockets, plugs and wires will also face the rise.A metal clad connection unit retailing at £10.54 will see an increase of 29p in its overall cost when taking into account the rise to a rate of 20 per cent.A basic 25 metre length of single core cable with an original price (including VAT) of £28.68, with £4.27 of that figure paid as VAT. After the rise comes into effect the VAT figure will stand at £4.88 pushing the overall price up by 61p.Although this might not seem that much, for a basic electrical supply it is. The effects will be felt even more so when bought in bulk.This rise will undoubtedly affect tradesmen such as electricians, so the emphasis on getting electrical supplies and materials in before the rise for the self employed and small businesses alike is quite substantial.It will also affect those looking to make significant changes to their homes, with the rise in VAT prices on electrical goods these plans are likely to be significantly affected.As common sense would dictate, the price of VAT will obviously rise as the cost of the original item does.An oil filled radiator, considerably more expensive would under the current rate cost £139.98, which would give it a VAT rate of £20.85. Under the expected changed rate, VAT would stand at £23.88, a considerable increase of £3.03.On goods over costing over £500 the VAT rate is likely to be near to or over the £100 mark. This is a stark vision that really hits home the necessity of making any potentially costly purchases of electronic goods and electrical supplies now.While Osborne’s budget changes and VAT increases may be despised by most, it has been widespread public knowledge for the past five months. So come January 1st if you’ve not taken advantage of the current rates then there can really be no excuses.