Darling to slash VAT and spark Xmas spree

Alistair Darling will make a high-risk bid to lead Britain out of recession tomorrow, when he is expected to cut VAT and entice the British people to go on a pre-Christmas spending spree.

The cut is expected to see the rate drop from its current level of 17.5 per cent for at least a year - and possibly for as long as two years. There was speculation that he might slash the rate to 15 per cent. Oh whoopee.

Most household products (food, newspapers, children’s clothing etc) are already exempt anyhow and fuel is paid at much lower rate of taxation. As for products on which VAT does apply, would people be more likely to buy an item costing £57.50 instead of £58.75? I very much doubt it!

The idea is to kick start the economy and I can't see it working because as the majority of us are already spending our savings in order to survive so any little extra we will keep and try and replace what we have already been forced to spend. A reduction in VAT simply means we may be able to afford the normal things in life (that we have been accustomed to buying but now have to go without) and certainly not consider purchasing luxury goods or go on wild spending sprees.

Of course, the people's not such a darling will giveth but he will taketh away a lot more in a few years time. What might be a far better idea is to bring in a two tier system of VAT. What would benefit everybody (public, businesses, farming and industry) would be if he exempted VAT on heating, lighting and oil and cut the cost of petrol by 10p. Whilst he is at it he could reduce telephone bills to 5% VAT. For businesses and industry, farming and agriculture this should reduce their overheads and running costs and possibly help them stay in business and for joe public we can afford to travel and our household bills will reduce because our quarterly bills have come down so we have more money in our pockets to spend as well as save.

It solves quite a bit with its knock on effects if you think about it.

Of course, the whole idea of this is that it is a "vote winner" for the next election (hahahaha, he thinks!) The only guaranteed vote winner for any party would be to opt out of the EU and rather than pay them billions of pounds every week and simply consider that during a time of world recession that charity should always begin at home.