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Proposed cut in VAT

RobM

55 years as a supporter!⭐
Joined
Jan 20, 2007
Messages
9,450
Location
Essex of course!
ooh like that will solve the country's economy.
So instead of paying £11.75 for something, I'll pay £11.50 instead. The other 25p can go towards the gas bill.

Whoopee.
 
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So the fact VAT is on most things isnt going to help......to isloate to one item is never going to be a big saving is it really....:unsure:

Next we will get a thread about £150bn in debt, lets blame somebody........

Taxes will go up eventually to pay for it all so best get in quick with the savings and spend spend spend.....
 
So that'll mean a 2% drop in prices overall. Hmm I suppose that's not a bad thing but I could save more by walking to the shops rather than driving.
 
VAT cut won't reduce prices unless they are traditionally priced "+ VAT" - for example, can you see a newsagent either:

a) keeping crisps at 50p (as they are all labelled) and pocketing the extra 1p, or

b) reducing the prices of all his stock

It will only benefit the public on things like electric, gas, car servicing, etc.
 
And if it went up by the same amount you would all be livid....surely a saving is a saving...maybe there are too many rich people on SZ.
 
And if it went up by the same amount you would all be livid....surely a saving is a saving...maybe there are too many rich people on SZ.
I think it's a good move to try and kick start the economy as clearly nothing else they have done has worked at the moment.

However, I do agree with Carl's second point. I'd be very very concerned that most retailers will not pass on the saving to the consumer, however perhaps that is Brown's aim. Get business profits thriving again.

Not 100% sure that it is a good thing though as it feeds the fat cats again, while not really helping the poor if they fail to pass on the savings to the consumer.

However, if buying anything huge (which is also not for the poor) then generally they are always prices excluding VAT so in theory it would be much harder to increase them profits and you'd notice a fair saving difference.
 
"There are too many rich people"
How do you define rich? Able to pay their bills? Like to travel? Own a Bentley?
 
None of those.

A saving is a saving no matter what the amount. I would rather have the pennies in my pocket than someone elses so that I can decide whether they go to charity or indeed my good cause of choice.
 
None of those.

A saving is a saving no matter what the amount. I would rather have the pennies in my pocket than someone elses so that I can decide whether they go to charity or indeed my good cause of choice.
That's the trouble though SS. Pennies are not going to be enough to save some people during this crisis.
 
That's the trouble though SS. Pennies are not going to be enough to save some people during this crisis.

Unfortunately that is highly likely to be the case. There are always gonna be casualties no matter what any government does.

I feel sorry for those who are genuinely suffering as a result of everything at the mo. I dont feel any sympathy for those who have lorded it up living the life of rock stars on borrowed money who are now paying the price.
 
It will only benefit the public on things like electric, gas, car servicing, etc.
But to be fair it will also save people money on luxury items like TV's, Cookers, Cars - big savings. I dont think it will be enough to make people spend money though. You would need at least 5% for that to happen.
 
2% isn't going to save anyone. We can all save that amount easily. Not having broadband for example. People must balance "need" against "want".
 
The average person will save pennies from the VAT decrease.

For me they should have slashed fuel at the pumps,Forced the utilities to slash their charges and scrapped road tax and the TV license.These measures would give the average person several hundred quid extra per year which in turn will make them spend on the high street.
 
Bring on deflation!!

Well Labour did that before and plunged the country into even greater debt. And on tonights news it looks like they are going back on their pledge not to raise income tax on high earners or anyone else. Guess what, it looks likely that the 40% tax bracket is going to be raised to possibly 45% and other tax hikes are going to follow.
 
Well Labour did that before and plunged the country into even greater debt. And on tonights news it looks like they are going back on their pledge not to raise income tax on high earners or anyone else. Guess what, it looks likely that the 40% tax bracket is going to be raised to possibly 45% and other tax hikes are going to follow.

from what i can see it looks like a new bracket will be introduced with people earning over £150k paying 45%
 
The average person will save pennies from the VAT decrease.

For me they should have slashed fuel at the pumps,Forced the utilities to slash their charges and scrapped road tax and the TV license.These measures would give the average person several hundred quid extra per year which in turn will make them spend on the high street.

And their fear of being unemployed will disappear because they are about £20 per month better off? :unsure:

And arent the government trying to get the utilities companies to pass on the savings to the consumer? They are private companies so its not that easy to do.

Its good to see that grays is leading the way in energy price savings by switching their floodlights to energy saving lightbulbs....called the off switch...:D
 
Tax the rich. Excellent and about bloody time, they can afford it. If you can't live your life on £150k a year, there is something wrong with you. Of course one alternative would be to put higher taxes on everyone, but that wouldn't solve anything, would it?

That nice Declan who used to be on Breakfast TV explained inflation. The rate the Gpvernment quotes covers everything except houseprices. However, if you break it down it is quite interesting. Things like bread and milk and eggs (ie the stuff we buy) is running at around 14%. Luxury items such as large electrical items etc is running about even. So, an immediate 2.5 cut in VAT will make tellies cheap, but food is still expensive.

What really needs to be done is a cut in excise duty on diesel. Whilst petrol has fallen, diesel is still relatively expensive. Pretty much all lorries use diesel, so transport costs are still high and the knock on is felt on food etc. Drop diesel prices, food prices fall. That would more useful than a 2.5 cut on VAT IMHO.
 
Tax the rich. Excellent and about bloody time, they can afford it. If you can't live your life on £150k a year, there is something wrong with you
But is it fair to tax someone at a higher rate just because they earn more, when they are already paying more in actual money terms already?
 
What really needs to be done is a cut in excise duty on diesel. Whilst petrol has fallen, diesel is still relatively expensive. Pretty much all lorries use diesel, so transport costs are still high and the knock on is felt on food etc. Drop diesel prices, food prices fall. That would more useful than a 2.5 cut on VAT IMHO.


Finally, someone talking sense.
 
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