Originally Posted by Bram

The only thing I have to say about VAT increase is that it may not deliver what they intend or it could cause more issues than it resolves

1. What if the consumer do not purchase goods with the hike or drop in consumption or say put of sale
2. What do they rise (Govt) to plug the shortfall in their sums that this rise woukld raise
3. What affect will it have on production/economic growth of UK goods so affected with a rise and drop in sales
4. If point 3 above does start it will cause more issues so needing more measures and more areas targeted to plug shortfall

This is what Brown was on about and to an extent Cable. The quick measure may damage long term revenue or reduce in production/trade so affecting up turn in economy. It is this that they need more than anything else to bring the country out of recession or we may fall into back into recession.

But the Euro may be a worse problem as it will cause the problem yet again through reduced exports to Europe our biggest market. So back on the merry go round of finding other areas to cut or raise.

Originally Posted by Leslie

The French put VAT on food, and I hear food is twice as expensive as here.

Les

Originally Posted by Leslie

The French put VAT on food, and I hear food is twice as expensive as here.

Les

Originally Posted by Klaatu

The Brits put VAT on food too, only HOT food (That's the "value add" apparently).

Originally Posted by Leslie

I thought that was only if you eat the food on the premises. If you take it home as in hot fish and chips, I think it is zero rated.

Les