Liz Truss considers 'nuclear option' of cutting VAT to 15%

What l don’t get is… how did we come to this? We seem to have gone backwards.
These days, when there is one thing after another, l am starting to feel punch-drunk.
Where will it all end? Where is the light at the end of this very dark tunnel?

1 Like

Crematorium? At least it’ll be warm in there :joy::joy:

2 Likes

Who can even afford that ?

3 Likes

Equity release your house and buy a prepaid plan.

1 Like

Get lost! I love my house!

1 Like

Shrouds don’t have pockets.

A cheaper alternative which I’m looking into is to hire a balloon and float off over an active volcano, and pay a local lad with a bow and arrow to burst the aforementioned helium filled object at an appropriate moment.

2 Likes

Attention Seeker! :laughing:

1 Like

deleted - off topic

1 Like

Good for you @Donkeyman I’ll be in the queue behind you at the bank. I’ll give you wave! :joy:

1 Like

What happens if VAT gets cut to 15%? the public would have more spending money as goods cost less, so more goods sold and the GOV gains as well as the population.

It sounds like they’re that big, you’ll fit your whole family in there and keep them warm too! Ha!

1 Like

But most of this spending money would be used to pay fuel bills, which I’d imagine is partly why they’re toying with the idea.

fuel bills would be cheaper as well with reduced VAT

1 Like

deleted - way off topic

1 Like

Yep, but not enough to counter an 80% rise.

I know we are digressing but l am laughing so much and it helps me to forget the horrible situation we are all in.

1 Like

You’re forgetting inflation - the goods may not cost less; they may even cost more … :open_mouth:

Stimulus is not an answer to inflation

A VAT cut is a broad-based stimulus – the equivalent of sending a cheque to everyone in proportion to how they shop, roughly speaking. Just because it manifests as prices being lower than otherwise does not change this. And the message of high inflation is that the economy does not cry out for more stimulus. Demand has been outmatching supply. If this was only about energy prices, then the Bank of England might be more relaxed – and the government could restrict its response to the energy sector alone. But OECD figures show that around two-thirds of items in the CPI basket are rising in price at over 4% a year. A further fifth are rising at over 2.5%. Meanwhile, the labour market is as tight as it has been this century, in terms of the numbers of workers available for each job vacancy.

Stimulus is not an answer to inflation, no matter where it ends up. Moreover, businesses struggling to find the staff or pay their bills are less likely to pass on a VAT windfall than they would during times of low demand, such as when VAT was (correctly) cut in 2009. This is just one reason that the inflation-cutting attractions of a VAT cut are not that great either. Another is that when the headline figure is likely to hit double figures, it is fanciful to think wage demands will be substantially moderated by a slight change in the number. The difference between 2% and 4% inflation is much more noticeable than between 8 and 10.

1 Like

Sorry about the thread diversion BTW Omah. Not done out of malice, but shear idiocy and mirth.

1 Like

No, they wouldn’t.

1 Like

@Dextrous63 , “equity release your house”
Sod that, whatyer fink lm hangin on to me savings for ??
I spose l could get a paupers funeral anyway, l definitely qualify !!
:-1::-1::-1:

2 Likes