Tag Archives: vat

Opinion: Once again, the French show a little bit more imagination…

By Martin Land | Wed 2nd September 2009 - 6:45 pm

The reduction in VAT from 17.5% to 15% quickly condemned and rightly so, by Vince Cable, as expensive and ineffective is one of this government’s more costly errors. The one year only cut will cost us the incredible sum of £12.5 billion pounds and has done little to stimulate consumer spending, simply because despite the enormous cost it still seems so meaningless at the till.

Indeed, it may will come with a sting in the tail, as when it comes to an end and VAT goes back to 17.5% it will come with a sharp inflationary jolt which may well trim back some of those ‘green shoots’ that Labour will being telling us about this winter.

The French, as usual, have shown a little bit more imagination.

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Posted in Op-eds | Also tagged , and | 4 Comments
Stephen Tall

Jeremy Browne: VAT cut has helped the richest the most

By Stephen Tall | Wed 8th April 2009 - 11:09 pm

The Lib Dem press release headline is stark: Wasteful VAT cut only benefiting the rich. (It’s also, whisper it gently, not 100% accurate: for ‘only’ read ‘mostly (ish)’).

Here’s what Lib Dem shadow chief financial secretary Jeremy Browne has to say about the party’s research showing that the VAT ‘savings work out at an average of over £9 a week for the richest households, while poorer households are saving less than £3, despite recent claims from Gordon Brown that families would save at least £5 a week’:

The Government’s defence of its wasteful VAT cut continues to unravel. Its benefits

…

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Posted in News | Also tagged , , and | 1 Comment
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    What the Prime Minister actually said was that if a prices link or 2.5% did not keep up with earnings over time the government would correct it. But that would ...