It's only temporary, but it undoes what Norman Lamont did in 1991 for a while.

 

http://www.telegraph.co.uk/finance/financetopics/budget/3502621/Pre-Budget-report-Big-VAT-cuts-to-boost-spending-in-emergency-budget.html

Norman Lamont is an anagram of Not Normal Man.

people with black eyebrows and white hair scare me!

 

interesting about the VAT though. if it'll cost £12b in the first year then the government will find a way of clawing that back.

 

"brum brum flash flash kaching kaching" comes to mind...

"...........The move could save the average family as much as £10 a week..........."

 

I doubt it!

 

For most things we purchase (with the exception of food in supermarkets) like clothing and petrol already have VAT included in the price.

 

I mean a pair of Levis is around £50 and a litre of unleaded is £0.94 including VAT - without VAT the actual prices are reduced by 7/47; the jeans become £42.55 and the petrol £0.80.

 

If VAT does come down to 15% do you really think that the retailers will pass that reduction on to the consumer? I reckon not - we will still pay £50 for our Levis and £0.94 for a litre of fuel. However you only need deduct 3/23 from the "gross" price to see what the retailer gets after paying the vat; the jeans become £43.48 and the petrol £0.82.

 

In short for VAT inclusive items, the retailer will simply pay less VAT to the government whilst keeping their prices the same; and so make more profit. Although not good for the consumer, I guess it is a help to struggling businesses. But, Mr Darling, don't lie about families being better off!

 

The only time a consumer will benefit is where you pay for a service £x "plus VAT" - like a plumber's or solicitor's bill for instance. In that case the dreaded "plus VAT" is of course 2.5% lower.

 

You can tell I'm an accountant............:rolleyes:

 

Richard:headvswal

It's only temporary, but it undoes what Norman Lamont did in 1991 for a while.

Be grateful, we have one of the lowest VAT rates in the EU.

 

(It's still a fookin rip-off tax though!)

be better if they reduce income tax to see more in the bank!

be better if they reduce income tax to see more in the bank!

 

true but they want to encourage spending not saving so you only get your 'discount' if you buy something. let's hope people dont start maxing out their credit cards like they did a few years ago and get into even more trouble!

Norman Lamont is an anagram of Not Normal Man.

 

I thought he was a badger.

 

I thought he was a badger.

 

 

That's Leonard Di Caprio in 30 years............;)

 

Richard:p