Shops not passing on VAT cut

Beansprout said:
1p = 1p coin

73p = 50p, 20p, 2p, 1p

Now really, how useful is that?

The only thing the VAT cut is useful for is businesses being able to advertise they've passed on the the cut to gain more custom, or to slightly increase their margins so they stand a little less chance of going bust.
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well 73p = 72p more than 1p...


So if i only get 1p change to buy a pint I'd have to spend

30 x 130 = £3900 to get a pint from my change.

instead of

29.99 x 1.78 = £53.4 to get a pint


Beer maths, the purest of subjects :p
 
The VAT cut makes no difference to consumer spending. You can either afford to buy the item or you can't, simple as that. I'd prefer the stores benefit from the small increase in profit to help them through the difficult times.
 
msm722 said:
The VAT cut makes no difference to consumer spending. You can either afford to buy the item or you can't, simple as that. I'd prefer the stores benefit from the small increase in profit to help them through the difficult times.
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yeah but with the extra change i could buy 73 pints!!!

That's a lot of beer.
 
dirtydog said:
That is because you don't know the value of money.
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Always the same with you. I know the value of money probably better than you ever will, especially if things are so tight for you you've little choice but to snipe at those who you feel are 'inferior' in circumstances to you.

How many 29.99 items do you buy a month? Luxury items? Probably not many, like most of us. Therefore that 73p can times by what, 3 or 4 times? Wow, great. I'm sorry but if 2-3 quid a MONTH is a huge deal to you it's you with the problems and not me.

Your constant sniping at how I chose to live my life reflects far badly on you than it does on me. I chose to live at home becuase I am trying to further myself academically as high as I can. Once I've finished this, next year, I am applying for graduate jobs. Following this, once I'm financially comfortable, I shall move out of my parents house into a house with my girlfriend.

Now I'm sorry if this knarks you as you sit in your flat with your 1993 Vauxhall Cavalier but can you please do us all a favour and stop bitching about it every time I say something as affluent and extravagant as '73p is not a lot of money'?

Thanks :)
 
Gerard said:
You can bet your ass that if vat went up by 2.5% they'd have everything repriced.
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We wouldn't so you'd better be prepared to lose your ass.

ArchAnGeL said:
Jambo,

Manufacturing costs and distribution costs will rise and fall depending on the nature of the business. If your business is specialist i.e. not selling commodity products that can be bought elsewhere, haven't you increased prices or at least improved efficiencies/diversified to reduce the impact on your company? It's a business decision. It shouldn't be used as an excuse for not passing on the VAT cut imo.
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Like I said we haven't increased our prices. Maybe we should take your advice, increase our prices by 20% and then reduce by 2.5%.
 
[TW]Fox;13001264 said:
And you still come out with a pointless fistful of change after spending 4 times as long at the checkout while the girl tries to count out 73p instead of just giving you a penny.
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It takes a "checkout girl" (:rolleyes:) a few seconds to count 73p... it's not exactly hard.

I'd rather spend a few seconds to be given 73p than a second less to be given 1p...

I wish I could afford to have your attitude, but I can't. My bills stretch my income and any gain, no matter how small, is welcome.

I understand that business stand to incur costs changing all their price labels, but I'm sure they could find a way to pass on the reduced price rather than simply upping their profits.
 
Would much rather have seen a cut in income tax for lower earning families (increasing the threshold i.e. £2320 to £2500) or lowering corporation tax.

A VAT cut makes little difference to the shops and makes them incur costs to change advertising (which costs them £1000's in the first place).
 
[TW]Fox;13001529 said:
can you please do us all a favour and stop bitching about it every time I say something as affluent and extravagant as '73p is not a lot of money'?

Thanks :)
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No :) Because it is deeply patronising to people who do need their money to live and not just to buy BMWs and high end graphics cards.
 
jackthezipper said:
Would much rather have seen a cut in income tax for lower earning families (increasing the threshold i.e. £2320 to £2500) or lowering corporation tax.

A VAT cut makes little difference to the shops and makes them incur costs to change advertising (which costs them £1000's in the first place).
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VAT is the one tax which affects the poor the most, and a cut in VAT benefits everyone; a cut in income tax does not.
 
msm722 said:
I'd prefer the stores benefit from the small increase in profit to help them through the difficult times.
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I'd prefer to have the extra goods in my pocket thanks. You're looking at it the wrong way. Given that the government can't afford to give away what people like Fox apparently think is a worthwhile amount (10% off consumer goods and a free BMW? 20%?), you need to look at the bigger picture. If I go out and do all my Christmas shopping and at the end of it I have an extra fiver in my pocket, that's a chance of me walking into the coffee shop in the town centre and spending it. I get to relax over a coffee and a slice of cake, and the shop gets an extra fiver in the tills. Multiply the little extra spending everywhere, and this is what the government hopes will nudge the economy in the right direction.
 
The VAT cut is going to make very little difference to your pocket to be honest. Most of the weekly shop is VAT free anyway and big spends on VATd items are being covered by duty changes instead. With the current price of fuel the increase in duty is probably more than the reduction due to VAT so that will be going up instead of down.

Sure it is nice if you are going to be buying a whole load of VAT products, so may reduce your Christmas shopping by 2% or so, but it is hardly going to make any real difference to people who are struggling to make ends meet.
 
dirtydog said:
VAT is the one tax which affects the poor the most, and a cut in VAT benefits everyone; a cut in income tax does not.
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In what way? Where are the poor going to make massive savings? I would guess the majority of their money goes on food which is VAT free anyway (for the most part).
 
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