Freethinkeruk’s Weblog

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Archive for the tag “VAT”

What Do They Expect?

Figures just out report unemployment has risen to the end of November by 49,000 to 2.5million. The number of 16-24 year olds out of work is at the highest level since records began. These figures are just the beginning with the effects of the VAT rise and public sector redundancies yet to come to fruition along with reductions in benefits and pensions.

The current bunch of boys playing at government with their half baked, half thought out ideas appear at first glance to just be idiots but I’m beginning to wonder. The Torys have always liked to have high unemployment as it tends to keep wages at low levels thus creating more wealth for their business compatriots. Changes planned for the Health Service will eventually cost far more than the suggested £3bn but will virtually privatise the NHS with vast profits going to you know who. Education will be similar.

Of course, paying off the necessary debt that the country has, at such a reckless rate will undoubtedly mean that come the next election, in about four years time, there will be quite a bit of cash sloshing around in the nation’s coffers so that ‘the boys’ will feel happy to bribe the electorate with gifts from on high. The expectation being that voters will reward them with re-election. As the public so quickly forgot the eleven out of thirteen years under Labour, of vast improvement in public services and exceptional improvement in living standards it wouldn’t surprise me if the ruse worked.

 

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VAT Cut?

We only have to wait until tomorrow (Monday) to see how the Government will introduce measures in an attempt to boost the economy and help to take the edge off the recession. There is speculation that Alistair Darling will cut VAT from its current 17.5% to 15%. Now I am not an economist, I’m just a simple soul looking at the proposal in a simple sort of way. If I was thinking of buying an article currently costing £100 + VAT that’s £117.50 it would actually cost me. If I was thinking to myself that I couldn’t really afford it or perhaps I aught to wait a bit to see how things go, would making that price £2.50 cheaper persuade me? I think not!

I do think that this Government has handled the crisis rather well so far, although they should have seen it coming and prepared for it. However if what seems likely to be a VAT decrease in tomorrow’s statement, this will be a waste of of money in the order of £12bn doing little to stimulate our economy and if anything will benefit mainly foreign industry.

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