egafd.com

15%, 17.8% or 20% ---- it doesn't really make a difference to most things you buy, because shops price things at levels like 99p, ?1.99, ?349, ?599 etc. The VAT is just an element of that, so tinkering with it will just mean they'll make a bit more profit, the price won't fall.

It's only where goods are sold ex-vat that they will have to pass on the savings - but the dodgy dealers will probably take the opportunity to increase the base prices, so after adding the 15% it comes to the same as it is now.

It's all a con.

Of course it's a con, Johnny. I think we all know that.

Nothing but a tax bribe in the run-up to the next election.

Especially when you bear in mind that this VAT cut and the other "extraordinary measures to kick-start the economy" are just intended to be temporary, whereas the tax RISES that will hit everyone later will be permanent.

The Son Of A Preacherman is giving with one hand now - but the government will be taking back far, far more with the other hand come 2011.

I read somewhere that the VAT cut means that anyone having a 10-grand kitchen refit will save 250 quid.

Well whoopy fucking do!!

Because I'd wager that if you can affort to shell out 10 grand on a fancy new kitchen, you aren't going to be overly concerned about a poxy 250 Betty Windsor beer tokens.

Other figures I heard quoted were similarly underwhelming (a tenner saved on a car service etc. etc.)

- Eric

cor thats a lonnnngggggggggggg link !

Of course the treasury says " not us mate, must be a mistake".......until they have your vote !

Think of like this. The retailer will not pass on the reduction. That in real terms means we ARE spending more money.

Yes, the Scottish gimp has shafted us yet again, he doesn't even give us the option of where to spend our extra 2.5%.

Any saving in spending from 2.5% reduction in VAT for 13months will at best be minimal. I think the 0.5% increase in NI will outweigh any savings.

Although the Tories raised it from 8% in 1979 to 17.5% by 1997- 9.5%!

I'm sure that Von Boy ran out of space to tell us that !grin!