The VAT cut that never was
Monday, 24 November 2008 17:37

Alistair Darling, or was it Gordon Brown's emergency budget cut of VAT from 17.5 to 15% is a non-event. That amounts to about 5 quid off a 200 pound TV which is hardly likely to get people out spending.

More significant is that Gordon / Alistair has held back any reduction in fuel, alcohol and tobacco taxes. A fuel reduction would have benefitted every person is the country by reducing their price at the pump every time they fill up, and it would have reduced the cost of everything we buy by reducing transport costs.

Then we come to the costs, yet another rise in National Insurance contributions, that really is Gordon's favourite tax, because everyone pays it and there's no way to avoid it.

Raising taxes for high earners will not raise lots of money, it's purely symbolic to make us think the rich are being taxed.

An emergency budget that doubles the national debt in one go, that  one of us and our children will be paying off for decades to come.



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