So what's everyone's opinion on this? Was it worth borrowing even more money for it or is it a waste of money? Personally I think this is one of the worst decisions in the history of bad decisions. I mean not only is this not on food and fuel (the essentials) but if you spend £100 then you get about £2.13 off. £2.13!! I'm struggling to pay for my drugs (medical) and he's giving me £2.13!! :tantrum: Also if the government had saved all the money made from previous taxes and not blown it on various schemes that didn't work we wouldn't be this far in debt now. Why don't they reduce/scrap taxes on fuel, food and medical purposes and use this borrowed money to fund that?!? That's my opinion sorry if anyone disagrees.
Hmmm, I haven't been following this. I'm just confused though. If you're struggling to pay for your medical drugs then isn't getting £2.13 off a good thing? Or have I missed somethinggggg? *hates UK politics*
I'm not exactly sure if I should be in this thread. I just saw VAT and thought Vault-Tec Assisted Targeting System. Damn you Fallout 3... Perhaps if you explain the issue some of the more pollitically sound EC'rs can join in.
Sorry, yes it is a good thing but it's not really enough for anyone. Anyone who has been hit by the depression needs more and more especially it's needed on food and fuel costs which aren't included. The issue is that Labour has borrowed so muchmoney that it's vertually impossible to pay off and their solution to this is to borrow more money, they plan to put confidence back in the market which was why I'm trying to find out if it actually worked although most people I've spoken to dont think it will
For us - it's a bad thing, businesses in our border regions are already being hurt by the different VAT rates in Northern Ireland and the exchange rate between euro and sterling, this rate cut will make a 6% difference in VAT rates between us and NI. Though my own family are capitalising - they are going to Newry to stock up on booze before Christmas and my best friend will be doing his shopping when he goes to the UK in a couple of weeks to visit his boyfriend.
hmm... if anyone hears of anyone who is actually encouraged to spend more than they would anyway with the VAT cuts can they let me know. I'm sorry if my posts seem erratic by the way, like before where I was angry then suddenly ok again, that happens occasionally.
Well, round here the end result will be that the price of Petrol (currently 89.9p) will actually be going up... as for the rest, a 2.5% cut in VAT is more a 2% off the total price of something... just worked it out, something that currently costs £100 (inc VAT) will end up costing 97.87p - assuming the full VAT cut is passed on. Which it won't be, 'cos with Fuel Duty going up 2p/litre, that's going to hurt the hauliers (who can claim back the VAT, but not the fuel duty) - and make moving stuff around more expensive. Add to that the costs of changing all the advertising, the leaflets etc, and I'll bet we, as shoppers won't see much, if any change. Of course, we'll notice it in a couple of years when the NI changes kick in, the VAT goes back up to 17.5% (and of course, they won't take back the fuel duty rise). I'm not impressed...
I don't know much about it, haven't had time to watch the news in the last few days... but from what I can tell, I think it's a reasonable idea. I mean, to ordinary people or people who are less well off in the first place, it's not going to put many "pounds back into our pockets", but I don't think that's the immediate goal, right? It's designed to encourage richer peeps, the comfortbaly well off / middle class to go a bit wild, splurge on Xmas etc. And then he hopes that that will stimulate the economy, get the good old Mammon machine up and running again, and help us all in the long run. Maybe I got that round my neck. I haven't really read much about this issue. I could be totally wrong, so please correct me if you're better informed.
well partly I think that's right at least, but the chancellor seems to think it will stimulate spending across all economy brackets. You are right that it might stimulate spending in the upper margins but the problem (at least for me is) i'm out of money now. This method MIGHT stimulate slow recovery (or plumit us further into depression) but I honestly am going to be in really big trouble within a matter of months
The additional work required to reprice everything, the additional work related to splitting out the new VAT reports by percentage based on whether a service was delivered before or after Nov.18 and invoiced before or after Dec.1 means that most small companies will not bother to reduce their prices - it would not cover the bureaucratic nightmare they have just been given. Also, I doubt that a reduction of 2.5% will suddenly make me want to go out and spend spend spend... Nice political manoeuvre, not useful.
