Orange has announced that following the cut in VAT down to 15%, it will reduce prices on all handsets from Saturday in store, online and through telesales, letting customers take advantage of the forthcoming 2.5% cuts two days early.

Orange says for handsets, VAT will be charged at 15% but prices will be further rounded down to the nearest 50p, which means that in some cases customers, "will get an even better saving".

Sian Doyle, director of retail said: "This is great for our customers, as they don’t need to wait until next week to get the benefit of the 2.5% VAT reduction. This weekend is a very important trading weekend for Orange Retail, as it is the last pay cheque before Christmas so customers will want to do their Christmas shopping now".