So the Government is going to drop VAT from 17.5% to 15% to encourage us to spend more. Is this really going to work?
If you were toying with the idea of buying a TV for £299 would the fact that it now costs £294 tip you over the edge to now say “Oh bugger it... with that kind of saving, how can I refuse!?”
And how many retailers are going to pass this rate on?
Will your local chippie be dropping their prices from £7.99 for cod and chips to £7.83?
Coming up to Christmas will Clintons Cards be reprinting all of their price labels for cards from £1.99 to £1.95? Me thinks not.
What an absurd thing for the government to do. This will add up to a huge amount of money that the country will have to find elsewhere... but it makes absolutely no difference to the population.
It’s alright though you may think, at least fuel and booze is going down... oh no, the duty on these things is actually increasing.
Bizarre!
Posted: 2008-11-25 14:44:56