Can we discuss the mini budget coming today?

[devonwoody]

If the leaks are true a 2 1/2% cut on vat means if you have £10000 of spending money (not vat free spending) you will have £250 more spending money over the year.

Nobody please mention any political party or the post will get locked :wink:

That could buy a new tool for the workshop if you dont tell the misses.

 

[lugo35]

suppose that i'll help with one months heating

i feel that the housre prices are just to high to afford and be able to live properly.
will struggle to get a mortgage and live. pension has to go. sick and redundancy insurance got no chance.

 

[StevieB]

The problem with a cut in VAT is that you have to spend to claim it in the first place. From an economic point of view it makes sense, since you are not giving people a chunk of cash and relying on them to spend it rather than bank it. However, being a cynical old so and so, I do not envisage going out tomorrow and finding the price of everything in Sainsbury's or Axminster has suddenly become 2.5% cheaper. There is the chance that alot of this will be swallowed by hard pressed businesses rather than passed on to the consumer ie keep prices the same but only pass 15% to the government rather than 17.5%.

There is also the problem of how do you make up for the lost revenue in the future - anyone fancy a 2.5% increase in income tax 2 years from now?

Steve.

 

[cant-weld-wood]

does that that petrol & diesel will drop too :lol: :lol: [-o<

 

[Shultzy]

There is also the problem of how do you make up for the lost revenue in the future - anyone fancy a 2.5% increase in income tax 2 years from now?steve.

There has been rumors that vat will go up to 22.5% after a general election to pay for it.

 

[devonwoody]

Yes schultzy, that would be a really nasty sting. It crossed my mind as well if it was got back that way.

Also if prices are not reduced in the meantime by the reduction, it would make my blood pressure rise by 25% as well.

 

[Jenx]

Also have to agree with the general concensus .....
and due to mistrust of politicians in general, regardless of which camp their foot is in...
I'm feel sure that what "may be given today, will be taken away 2-fold tomorrow" and also that we, as 'ordinary bods' are perhaps not that likely to see the benefit .... it's quite likely that 'business' will absorb the extra revenue. That, in itself is perhaps beneficial in a certain way, if it secures the employment of people.... for sure, I wouldn't go counting one's chickens, in the belief that we're going to be instantly 2.5% less burdened as individual consumers overnight. :?

 

[devonwoody]

So if I make any reasonable sized purchase I am going to ask what the price was on the 20th November 08 and if I havent got a reduction I either will not purchase or perhaps it could be reported that the reduction wasn't made.

How about that?

 

[Argee]

I doubt that it will make a difference to the average shopper. Food and utilities are hardly targets for a drop in VAT. Large-amount electrical and furniture items will be a little cheaper, but who will be buying those if they're strapped for cash?

I expect that those just having had catalogues and price lists printed and those running web shops will be delighted with the work they've now got to do.

Ray.

 

[Digit]

The value of 2.5% off of petrol will depend on whether the VAT was placed on the cost or the cost plus the fuel tax.
On the subject of electrical goods, as the vast majority are now manufactured abroad it would seem to be of little general advantage to other than China perhaps, and £2.50 off of £100 isn't going to send me rushing to the shops I fear.

Roy.

 

[ByronBlack]

It's another pointless act by a pathetic government that will have zero affect, just like the billions that have been handed to the pockets of the bankers in the bailouts. Why decrease it if you are only going to increase it later. Might as well just leave it alone and concentrate on encouraging small/medium business and figure a way of stopping the pound becoming as valuable as the Zimbabwe Dollar.

That VAT decrease will mean diddly squat, if the pound keeps dropping, all the stuff we import will be more expensive and the small drop in VAT will make no difference.

 

[Jenx]

it could be reported

I hear what you're saying there DW, but "reported to whom"?

Its my feeling that, in this country now, in the early years of the 21st Century, our society is in a very very sad state of affairs, because nobody's listening in any official capacity anywhere.
The days of there being 'officialdom' there to protect what we can maybe loosely call 'the innocent', have long since departed.

No doubt someone will say.. " Trading Standards / HM Customs & Excise / etc" ... I doubt it would go anywhere at all.

Its sad, but I believe it to be true.

 

[Peter T]

Guess what.......................Darling has announced a cut in VAT, as expected, from 17.5% to 15% BUT he has increased the duty on petrol, cigarettes and booze so that the prices we pay stay the same!! :evil: :evil:

 

[Digit]

increased the duty on petrol, cigarettes and booze

Got to be one of the easiest jobs going, if in doubt, increase the above!

Roy.

 

[Maia28]

Guess what.......................Darling has announced a cut in VAT, as expected, from 17.5% to 15% BUT he has increased the duty on petrol, cigarettes and booze so that the prices we pay stay the same!! :evil: :evil:

So the net affect of this will probably be that most prices will actually rise for the consumer. Pathetic response from our masters that seems as well thought out as removing the 10% tax band. I'd like to see something that really helps small employers who seem most likely to be squeezed.
Andy

 

[Peter T]

The value of 2.5% off of petrol will depend on whether the VAT was placed on the cost or the cost plus the fuel tax.

Roy.

With petrol you have to take the basic price, then add on fuel duty, then stick the VAT on top of all that, so actually we pay tax on top of the duty.

But none of this matters because our wonderful chancellor has saved us the bother of trying to work out have much we would have saved on fuel by fiddling the books so we don't save anything.

Don't you just love it when politicians are so considerate??

 

[Jenx]

and it came to pass, that he giveth with one hand and taketh away with the other

and for a huge majority of us, what's one of our biggest monthly outlays ? Motion-lotion for the old buggy on the driveway.

Hat's off to brown & co for a radical innovative bit of thinking once again.

The 'net end result' ? .... nowt changes. :lol:

Jokers.

 

[devonwoody]

Lets not go into this evening turning this thread to a political debate.

We know what will happen.

As a pensioner I'm a winner, no tax rises and looks like some increase benefits now .

 

[Jenx]

Fair comment DW, fair comment indeed :wink:

 

[devonwoody]

The stock exchange likes it 9.81% increase.