UK VAT drop vs Australian Method...

[Energize]

Icesave cost the country billions because it was a dodgy, unregulated, foreign bank based in a bankrupt country. Of course, if people want to repeat those mistakes and invest in places like Spain and India then let them go ahead - I just hope they don't expect the government to bail them out, they have been warned.

They will be bailed out because of the fsa which guarantee all deposits upto £50,000, and the government would never allow people to lose money as all confidence would disappear and people would start hiding money under their mattress. Savers have no incentive to save in England with the dire interest rates, as long as the boe keep interest rates this low people will save in foreign banks. Savers are annoyed at being constantly punished by the government and boe and rightly so.

I don't know why but I always imagine the governer of the boe lowering the interest rate and saying in a german accent "we are ready to punish the savers".

 

[scorza]

They will be bailed out because of the fsa which guarantee all deposits upto £50,000, and the government would never allow people to lose money as all confidence would disappear and people would start hiding money under their mattress. Savers have no incentive to save in England with the dire interest rates, as long as the boe keep interest rates this low people will save in foreign banks. Savers are annoyed at being constantly punished by the government and boe and rightly so.

I don't know why but I always imagine the governer of the boe lowering the interest rate and saying in a german accent "we are ready to punish the savers".

They *claim* to be fully protected by the FSA, but so did Icesave - only it turned out that they weren't when things when titsup. Plenty of people have lost out on Icesave btw.

Savers aren't being punished, interest rates are set at the right level for the British economy to ensure a) price stability and b) economic growth.

 

[ScarySquirrel]

I am sure this has probably been mentioned but can someone explain how the **** this VAT thing is supposed to help us?

I have seen loads of shops with posters, billboards, online banners, I have received text messages from utility companies etc etc, informing me of this decrease in VAT and how it will be taken into account on my bills, things I buy etc.

Also, shops I have been into have had to put stickers on things saying that the VAT decrease will be calculated at the till and so the price shown is not corrects. Loads of things like this.

Now, surely the cost to all of these companies for doing this completely cancels out any extra they are getting from increased sales (which I find very had to believe will be that different - I for one have not changed my spending habits at all!)