My instant cure (abolish all VAT for December/January) is picking up cross party support (that's everyone at a party so drunk they need support).

It would kick start a spending spree over the crucial 2 months of the year(s) - Xmas and Sales.

Can you imagine the explosion of shopping? Two six packs of paper towels at 17.5% less? You bet, I'll keep 'em in the kitchen cupboard.
New house? Yes, please.
Easy to understand, easy to execute and you know what?

The expected massive drop in spending in Feb wouldn't happen (I know human nature).

King for Chancellor.

I expect GORDON reads this forum for ideas - so lets see if he has the "BOTTLE" to do this.

Certainly income tax and benefit changes would cost more to implement.

A VAT freeze for December - March 31st would be very popular.

The USA economy is about to tank even more - the car companies have been refused a rescue package. They will crash by JANUARY putting 2 million out of work and adding to the massive problems in the USA.

45 million out of work predicted on BLOOMBERG right now in the USA !!!!!!!!!!!

This is going to be a BIGGER CRASH than in 1929 because we have all lived on debt for 20 years.

The WARS were not affordable either - and they are the straw that finished the economies off.

So once again I warn everyone to batten their hatches because the real crash is yet to come - the world is teetering on the edge.

Chancellor King's idea is the only one which may save thousands of companies this Christmas - but lets see next week whether BROWN is brave enough to implement it.

Everyone I speak to agrees VAT should go ( permanently if possible )

@JK

Wouldn't directing money into infrastructure be at least as effective, longer lasting and greater benefit in the long term?

@BR

What would be the cost of implementing a VAT cut? (Direct to government and indirect for the extra bureaucracy imposed on businesses)

What would be the cost of benefit and income tax changes?

Dear all;

I must say that I agree on the stop VAT issue from many angles, but I cannot see that it is a fixable problem now.

I seem to remember that originally it was invented to give business more turnover.This is incredibly ironic as the system came in just prior to our "flexible friend", the credit card.

I put it to the board that VAT gave business a larger credit facility due to increased turnover, which was taken up by many,and was the pre-cursor to general over borrowing.

AH

The radio just mentioned that retail spending isn't down much form last month - quite how these statistics work out I don't know.

If cutting VAT is the solution what is the problem? (It doesn't seem to be retail spending)

So it looks like Darling Darling has taken my advice on VAT - and completely missed my point.

My suggestion of two months totally VAT free would have cost LESS than a silly 2.5% cut for a year yet would seem SO massive and be SUCH a huge statement that I'm sure it would be a massive kick up the ladder for retail whereas 2.5% will do very little and be wasted.

Dear All;

I still think you have missed a small, but in fact, major point here.

How many man hours is it going to cost to re-invoice customers and clients with a new 15% vat invoice and replace a 17.5% one, or are they all supposed to just be in assumption of the regulation?

For example, "Mrs Brown" down the old council estate, will probably pay for her new boiler for the winter at 2.5% more than it should cost, this practice will go up and down the land and I feel that it will create another black hole in the economy.

VAT is a rather silly tax and very vague.

AH

1. retail spending usually goes up at this time of year

2. retail profits are falling - they have had to slash prices in order to maintain this small increase

3. most stores rely on October - December for their annual profit, hence Woolies is already rocking and more will go under.

The VAT reduction will improve things for businesses. Whether it is enough is open to question.

Shops etc only need to to reprogramme tills. They can either remove 2.5% from people's overall bills or most modern systems can reprice via barcodes with a simple push of a couple of buttons. It will not need massive man hours. Signage could be a problem in the first few weeks but most signage is updated weekly or monthly in any case so it will soon catch up.

Lets wait and see what the result is - I think we are in a deep hole so this VAT cut is welcome. I still think other temporary freezes as CAMERON has suggested are good ideas - freeze council tax for 2 years - freeze small business tax liabilities for 2 years to improve cash flow.....create a lending bank for small businesses.

Stores work to "price points", be it

dixie wrote:
[quote]Stores work to "price points", be it