So we now have to live with 20% VAT. I don't seem to recall that being in any manifesto, do you?
As a consumer will you notice it. Well your Starbucks coffee will go up by 6p a cup (at a guess) but will you notice it? I'll tell you who will notice it in a big way. People like me who run small businesses. Just suppose you have to find £10,000 a quarter in VAT. You'll have to find nearly £1,500 extra. Last year business rates shot up. It just makes it harder and harder to run a small business. Losing another £6,000 a year to the taxman when people are spending less, fuel costs are shooting up and margins are being hammered will be a killer blow to many small businesses, that two years ago were trading profitably.
What help has the small business sector had from the coalition? Absolutely nothing. What help have they had from Barnet Council? Absolutely nothing. What help have they had from the nationalised banks? Absolutely nothing. The majority of small businessmen vote Tory. What do they get in return for their support? Absolutely nothing. Gordon Brown was slagged off by all sides. Ill informed pundits said his temporary VAT to 15% made no difference. I know for a fact that it gave many small businesses a shot in the arm. It was probably the only change in taxation for the last 10 years that helped. Millions of people are going to be looking for jobs soon. As the public sector is being slashed, the only place to turn to is the private sector and small business provides a lifeline to millions. Clobbering it again is completely illogical.
Thanks David, Thanks Nick. For nothing.
5 comments:
I find it particularly galling that a so called Conservative led government should implement socialist theory regarding tax. It has been proven time and time again that tax cuts help to boost the economy and actually increase the overall total tax take.
If people are allowed to keep more of what they earn, they spend it on the goods and services they actually want which helps companies to grow and be profitable (and pay more corporation tax) and employ more people who no longer have to be paid the dole.
Perhaps the boy Osborne should have studied the Laffer curve theory before pursuing this ill considered policy. And whilst the last Labour government did reduce VAT for a short while, they also introduced the 10p rate for basic rate payers and the 50p rate which everyone knows will be revenue neutral, but is a massive disincentive to enterprise.
Oh dear, Rog: does this mean the cost of borrowing our library books from Starbucks will also be more expensive than Cllr Ramsbottom led us to believe?
Not in any manifesto? It's worse than that, Roger. It was one of the Lib Dem pledges to oppose VAT increases.
http://www.newstatesman.com/blogs/the-staggers/2010/06/lib-dems-vat-rise-tax-poster
Well, I don't know whether it was a pledge or not, but they certainly made use of it in their election campaign.
The LibDems reneging on an election pledge? Surely not?
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