Quite apart from.the somewhat complex economics of it all which I dont understand, experience informs us that when there is a reduction in tax, vendors somehow manage to put their prices up so that buyers don’t receive that full percentage drop anyway.
With inflation rampant, no manufacturer/supplier is going to reduce their price when their costs keep increasing.
They might have to, if no one can afford to buy them. Otherwise they just stockpile!
With inflation rampant, no manufacturer/supplier is going to reduce their price when their costs keep increasing.
Absolutely. Plus of course the energy suppliers will also marginally increase their prices to increase profit margins, despite the fact that all of this is down to them anyway.
If costs aren’t covered then businesses will go to the wall.
@Omah ,If they want to cut stimulus then why dont they cut television
adverts instead of increasing them, same goes for the internet and this
forum ??
If everybody does what lm doing the price of energy would collapse !!
It sounds like ‘catch 22’ then.
If people can’t afford them, then they do without. Manufacturer loses.
Yeah. But I’m not going to buy real estate in Panama. Mind you, I think there’s an old butchers near the docks in Gdansk up for sale…
Sorry about the thread diversion BTW Omah. Not done out of malice, but shear idiocy and mirth.
So …
Back to topic properly now…
Simple question,…what is the solution then?
@Dextrous63 , “solution”
As l said somewhere before, dont buy it!!!
Solves the VAT conumbrum etc! etc!
Hi
The reality is the here and now, it’s the thing really worrying those who we rely on.
The hospital porters, cleaners, housekeepers, health care assistants.
They have been thrown under the bus if VAT is cut, it will do next to nothing for the because most of their money goes on rent and food.
Lovely people who deserve better from society.
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.
Food is vat free. Domestic energy is at only 5% VAT. Businesses might pay less but the treasury loses out and the public will only benefit if they have disposable income and aren’t struggling to heat or eat. Plus they are raising interest rates. It’s all over the place in terms of objectives. I’d love to see how they worked out the savings, but how would it benefit the ordinary person struggling with fuel bills?
Hi
Thanks for that Annie, shows where the money is.
The very rich don’t pay death duty at 40%, they have property in trust.
If they own a business they are paid in dividends, much cheaper than paying tax
If anyone is interested in further reading, this is the source (House of Commons library) :
https://commonslibrary.parliament.uk/research-briefings/cbp-8513/
Food is vat free. Domestic energy is at only 5% VAT. Businesses might pay less but the treasury loses out and the public will only benefit if they have disposable income and aren’t struggling to heat or eat. Plus they are raising interest rates. It’s all over the place in terms of objectives. I’d love to see how they worked out the savings, but how would it benefit the ordinary person struggling with fuel bills?
IMO, not at all … LT seems to be heading for a worse collection of shambles than those of BJ …
the rate has been cut before and it should be cut again to help move the country along.
It might help push consumer spending - which was what Brown aimed to achieve in 2008. But it will not help with the energy bills. They are rising much faster than a few hundred saved per household through VAT reduction. And pushing consumer spending risks increasing household debt and won’t reduce inflation. So overall is it not the wrong solution for the problems of today?
nothing will calm energy bills while shareholders demand high returns. too many interested parties involve in uk energy market always pushing against customer interests. the whole system needs working through form the base upwards.