A blog by Luke Akehurst about politics, elections, and the Labour Party - With subtitles for the Hard of Left. Just for the record: all the views expressed here are entirely personal and do not necessarily represent the positions of any organisations I am a member of.

Tuesday, December 02, 2008

VAT cut kicks in

I was a bit taken aback on handing over my £1.30 for a small black coffee in Greggs the bakers, Leather Lane, EC1, this morning, to get 3p change back.

The shop assistant explained this was the 2.5% VAT cut being passed straight on to customers.

So thank you, Alastair. I will, in the interests of the fiscal stimulus, find something to spend my 3p on.

If everyone else spends their 3ps too we might have the desired economic effect.


Blogger Brummie Alice said...

This comment has been removed by the author.

8:35 am, December 03, 2008

Anonymous Rich said...

The policy of cutting VAT is a complete farce because it sends a very bad message and clearly shows how poor our economy is. The idea that we can spend our way out of recession is simply the most irresponsible policy I have ever known. The shops would love our money right now but is it in our best interests to be spending it.

There is more to the economy than just retail and finance and this is something Labour have neglected to observe. The UK has been living beyond its means for far too long and this applies to the government and its people. The level of debt is simply not sustainable and if our economy relies on debt fueled spending then our economic problems are way beyond the credit crunch and a lot more serious than many imagine.

Two years ago a very arogant Brown preached to the French government on how they should be following the UK and relaxing borrowing laws. And now two years later the French report economic growth and is the result of strong agricultural and industrial policy....something the UK doesn't have.

The UK is in serious trouble and our reliance on the city is truly our biggest downfall. In business they always tell you to spread your risks, don't rely on one customer and expand your market place. The UK hasn't done this we have just been spending and living the good life for 10 years.....now its gone and there is no backup plan.

Expect big ramifications and what we are seeing is just the tip of the iceberg.

9:57 pm, December 03, 2008


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