Sky TV prices set for VAT increase

By Andrew Laughlin, Technology Reporter

Sky has confirmed that prices on all its TV packages will revert to previous levels tomorrow in line with the new VAT rate.
The satellite firm reduced its prices earlier in the year to mirror the government's temporary reduction in VAT to 15%, which was designed to help stimulate consumer spending.

However, the rate goes back to 17.5% on January 1, 2010, and so Sky TV packs, including high definition and Multiroom services, will also revert to previous levels.
Applying "rounded pricing" increases to maintain simplicity, all Sky TV packages will increase by 50p per month, unless subscribers take both Sky Sports and Sky Movies, in which case the increase will be 1.

Sky HD and Multiroom packs will increase by 25p back to the previous level of 10 per month, with changes due to be reflected in December's bill onwards.