VAT rise..anyone worried?
- Thread starter britain
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I didnt say it was
, I said a near enough £2.50 increase on something that costs £100 to buy isn't really anything to start winging about.
Soldato
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It's like when the media go mad over fuel increases. 1pence a litre even for me doing 50 miles a day for work in a Subaru only costs me 50pence more a week. Not the end of the world.
Soldato
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Again 1 or 2 pence a litre will be 50pence to £1 on a my Subaru (which has poor fuel economy), where I'm driving 250 miles a week for work.
£70 a week will become £71.00 per week.
Lets all sell our cars and buy horse and carts cos of the mad increase.
reason for that is, it was offset with a 2.5pence increase on fuel duty. the price never changed.
It'll be interesting to see which companies take the opportunity to do a bit of "rounding up" of their prices. So many things are priced at £XX.99 the increase in VAT will take them to a price just over the supposed psychological Whole pound threshold.
What do you think, will something that's now £99.99 turn into £102.13? My moneys on it going to £104.99 or even £109.99 and then blaming the nasty government for raising VAT.
What do you think, will something that's now £99.99 turn into £102.13? My moneys on it going to £104.99 or even £109.99 and then blaming the nasty government for raising VAT.
I've seen the new manufacturers recommended price list for sweets and crisps and a 2% VAT rise is the least of peoples worries tbh. Some are going up by a good 8% in January. I've noticed that Burger King have upped their prices by a good 5% this week too.
We gonna get raped.
We gonna get raped.
Then more people are going to have to start taking control of their finances properly. Most people can make incredible savings if they only try, be it in gas/electric bills, food shopping, gadgets etc.
Instead of buying a Bluray or game on release wait a month. Apart from key titles (SC2 MW2 GT5 etc) the price will drop fast.
Instead of going shopping twice a week go once, you'll buy half as much "fun" food which is usually eaten within 24 hours of buying it and again save money including fuel.
Fit CFL bulbs and turn stuff off that's not being used. Your electricity bill can drop through the floor if you actually look at where its going (Ours is about £20-25 a month for 2 in a 3 bed semi, My parents is £80 in similar conditions. My dad earns enough not to need to care enough to do anything)
Honestly the only way anyone should "suffer" because of the rise in VAT is if they have already made as many concessions as they can. Those people are few and far between.
Everyone else might have to forego the odd luxury. The problem is people forget that so much is considered a luxury in real terms. A cake, 20mb+ internet, sky, a game, renting a dvd, going out for a meal or drink, the cinema, holidays, tuna steaks, Coca Cola to name but a few. All can be reduced or removed to save a considerable amount so that you can do the few things you NEED to do, pay the bills & buy some food.
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Why is it going up so much? I'm guessing because the massive debt our country owes. Where did this debt come from, personally I dont owe any money so is it dont to businesses and people owing huge amounts of money they didnt have to banks?
In a few years time will this reduce when the country debt is reduced?
In a few years time will this reduce when the country debt is reduced?
Why is it going up so much?
Because they reduced it 2.5% in the first place (figure wise) im not sure if products actualyl decreased 2.5% as companies did a lot of that manipulation.
Then they realised it actually hurt them (-2.5% from every purchase * whole country = £££££) more than it aided a 'boost in spending' (I mean, 2.5% reduction, whos going to rush out for a 2.5% sale?) so now they're making up for it.
However, this 2.5% increase will actually increase the products (opposed to the very few reductions we actually saw when it was -2.5% less).
Oh, classic government actions.
Surely they calculated that it would destroy their potential earnings through VAT by decreasing it by 2.5%? I just don't get how that encourages spending. It didn't make more people 'rush' to buy items, yet damaged them hugely I'd imagine.
Because they reduced it 2.5% in the first place (figure wise) im not sure if products actualyl decreased 2.5% as companies did a lot of that manipulation.
Then they realised it actually hurt them (-2.5% from every purchase * whole country = £££££) more than it aided a 'boost in spending' (I mean, 2.5% reduction, whos going to rush out for a 2.5% sale?) so now they're making up for it.
However, this 2.5% increase will actually increase the products (opposed to the very few reductions we actually saw when it was -2.5% less).
Oh, classic government actions.
Surely they calculated that it would destroy their potential earnings through VAT by decreasing it by 2.5%? I just don't get how that encourages spending. It didn't make more people 'rush' to buy items, yet damaged them hugely I'd imagine.
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There are two financial problems at the moment, two very separate but often confused issues.
One is the credit crisis. This one was the one that the evil bankers played a part in but which a large chunk of the population of the 1st world helped cause in various ways. Banks giving out 100% mortgage to morons. Morons not realising that they could never afford to pay back the money etc etc.
That problem has NOTHING to do with the VAT rise and is in no way related.
The VAT rise is related to trying to reduce the UKs budget deficit and ultimately our debt. The debt is the amount we owe other countries (like China) which have lent the govt. money over the years to do things like the war or the NHS or whatever. The budget deficit is the amount of money we spend every year that we don't have. EG. if it costs 120 billion to run the country for a year but the govt. only gets 100billion in taxes then we are running a 20 billion deficit each year. This is then added to the debt as we have needed to borrow that money from somewhere.
Raising the VAT as well as all of the other measures being taken will reduce the deficit and ultimately the debt.
I doubt we'll ever see VAT below 20% again. At 20% it's more in line with the rest of the EU.
I doubt it was done to encourage spending (IE OHH my washing machine is £5 cheaper hurrah!!!!) more just to allow people to have a little extra in their pocket at the end of the month for the things they needed. Having that extra might have enabled them to spend a little more in the shops that maybe at 17.5% they wouldn't have had to spend. Per person its nothing but over the whole country it probably added up. They must have judged at the time that the extra little bit spent in shops would be preferable for the economy than the budget deficit that it would have added to.
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ahahahaha, are you serious?
You are aware that we're just had an election and brought in a government to fix the damage the last shower did (or rather "do" every time they get into power) aren't you?
Soldato
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I understood that it is only going up to 20% to get back the revenue lost when it as 15%.
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Nope. It will make about as much difference as the cut made.