Crossing the border to do your shopping may not prove as economical from the start of next year.
The UK VAT rate is being hiked.
The new Chancellor George Osborne made the announcement as part of his first Budget.
From next January, it'll be 20 per cent - from the current 17 and a half.
He says raising VAT was unavoidable:
Meanwhile, the President of the Letterkenny Chamber of Commerce has welcomed todays UK budget.
Paul Byrne, says with the rise in VAT to 20%, then Northern shoppers may come back to Donegal for value for money.