Budget
VAT up to 20%? Interesting, so as the majority of people have less money than ever everything becomes 2.5% more expensive? I'm no economist but don't prices rise inline with inflation anyway? Hang on, how would the Government get their paws on the money in that case?
I wonder how many retailers will absorb such an increase? Maybe Tesco etc? Unlikely though.
A quick peruse of the Guardian website reveals:
"The change would be felt almost immediately, with two-thirds of retailers saying they would pass on the full increase within a month, rising to 98% within the first year.
The report also found that the impact of any change in VAT would hit lower income groups most severely, given that they tend to pay above-average levels of VAT as an indirect tax on spending."
Will we see a 2.5% increase in performance or efficiency by the Government to represent the extra 11 Billion 'investment'(Same Guardian article) this will generate a year? I suspect not.
I wonder how many retailers will absorb such an increase? Maybe Tesco etc? Unlikely though.
A quick peruse of the Guardian website reveals:
"The change would be felt almost immediately, with two-thirds of retailers saying they would pass on the full increase within a month, rising to 98% within the first year.
The report also found that the impact of any change in VAT would hit lower income groups most severely, given that they tend to pay above-average levels of VAT as an indirect tax on spending."
Will we see a 2.5% increase in performance or efficiency by the Government to represent the extra 11 Billion 'investment'(Same Guardian article) this will generate a year? I suspect not.