VAT 'to be cut in rescue package'

[Clowgon]

The government is widely expected to cut VAT by 2.5% in Monday's pre-Budget report, as part of an emergency package aimed at kick-starting the economy.

VAT in this country currently stands at 17.5 %, so a 2.5 decrease whould put it at 15%. The lowest level allowed in EU law, which is stupid. It is not yet know if the cut would come into effect before Christmas. - Very much likely it will.

Edit: http://news.bbc.co.uk/1/hi/uk_politics/7744273.stm

[Jordy]

This is terrific news for consumers though and I think this could reignite the spending this Christmas, hurry up ;)

[Wayne]

15% is quite good tbh. Very good. :)

[scottish]

Their basing it on keynsianism (sp?) because they think that due to the increase in income they will spend more, but many believe that they will save more than spend.