The chancellor Alistair Darling has slashed VAT by 2.5% in a bid to resuscitate the moribund British economy. By targeting VAT as opposed to reducing tax, Darling is trying to encourage people to spend money rather than save it. If he reduced income tax or other forms of tax people it is likely most people would save it. To get Britain out of its economic slump Darling needs people to start spending. The immediate effect for consumers will be a reduction in all prices except for food which is exempt from VAT.
Combined with a reduction in VAT and the spate of pre-Christmas sales, it’s a great time to find yourself a bargain on the high street or online. To keep track of online prices set up an Invisible Hand Price Alert to be informed as soon as a price drops.
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[...] are already advertising their new savings on offer after the reduction in VAT from 17.5% to 15%. A woman questioned on News Night last night seemed thoroughly unimpressed when [...]
[...] on from the pre-budget report, VAT has been reduced to 15% a 2.5% drop from the previous 17.5% level. This is part of [...]