Emergency Budget: VAT to rise

Former_MSE_Guy
Former_MSE_Guy Posts: 1,650 Forumite
I've been Money Tipped! Newshound! Chutzpah Haggler
edited 22 June 2010 at 12:05PM in Cutting tax
This is the discussion thread for the following MSE News Story:

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Comments

  • flashnazia
    flashnazia Posts: 2,168 Forumite
    I agree that cutting the deficit is good for the country but what is good about penalising workers by taxing us to death?
    We already pay £31 of every £100 we earn in NI and income tax. If we spend what's left VAT deduction will only leave us with £55.20!
    "fools and fanatics are always so certain of themselves, and wiser people so full of doubts." (Bertrand Russell)
  • Jill_ wrote: »
    If is for the good of the nation then I can't see any issues with it. I really don't want the country going like Iceland or Greece


    Is it good for the country though? Surely a VAT rise will slow spending and therefore it will affect the economy as a whole. With unemployment predicted to rise, benefits cut and a VAT rise it seems very possible that we will end up in recession again. I know it was inevitable that VAT would rise but it might have made more sense to hold off until April when the new personal allowances kick in.
  • p4girl
    p4girl Posts: 141 Forumite
    This may be simplifying the situation, but I work in a fairly deprived area where many of my pupils' parents are on benefits - and yet drive 4 x 4 cars, the kids have every electronic gadget out, tell of the new tv they have at home, that they now have sky tv in their bedroom and are taken out of school for a couple of foreign holidays a year.

    I know it's not all children, but it's a good fair few. And the parents I mean are the ones on benefits.

    I have a small tv, a small car, small house and I worked hard from them. I think EVERYONE paying by increasing VAT is ok, if we're really in the mess the government say we are.

    You want a new 50 inch plasmsa, fine by me. But if the VAT rise is a tragedy, maybe just get a smaller tv!
  • Pippa369
    Pippa369 Posts: 32 Forumite
    It doesnt go up until 2011, so everyone will be going crazy now!! BUY BUY BUY
  • I think it was expected to be honest...how else are they going to get fund to reduce the deficit.

    We're planning on buying a new car...will defo be before Jan now!

    Day to day spending did VAT cut noticeably benefit anyone?! Not much therefore it's the same this way i think.
    x jo
    What's fur ye won't go by ye!
  • ShaneUK
    ShaneUK Posts: 1,094 Forumite
    First Anniversary Combo Breaker
    There is a "rumour" going around at work that IPT is also to go up, but I can't find anything concrete on BBC or other "decent" site.
  • wizk1
    wizk1 Posts: 911 Forumite
    First Post First Anniversary
    Let's put this into perspective. I currently pay £25 a month for my mobile phone contract including the current rate of VAT at 17.5%. At the increased rate of 20%, my bill will increase to £25.53. It's not the end of the world really.

    Even for larger purchases such as a £1000 TV for example, you'd pay £1021.28 at the increased rate. Hardly bank-breaking.
  • John_Pierpoint
    John_Pierpoint Posts: 8,391 Forumite
    First Post First Anniversary
    Insurance Premium Tax was mentioned in Osborne's speech something about 17.5% -> 20% & 5% -> 6% .
    The announcement immediately followed the VAT one and was a bit list in the "braying".
    You will have to check a newspaper of record for the details.
  • wizk1 wrote: »
    Let's put this into perspective. I currently pay £25 a month for my mobile phone contract including the current rate of VAT at 17.5%. At the increased rate of 20%, my bill will increase to £25.53. It's not the end of the world really.

    Even for larger purchases such as a £1000 TV for example, you'd pay £1021.28 at the increased rate. Hardly bank-breaking.

    Completely agree.

    and if you insist on buying non-essentials then surely you should be prepared to pay a little more?

    Luxuries are just that, if you can afford them you can treat yourself to them. If something is not a necessity then we shouldn't complain when it costs us a few extra pennies.
  • Debras_Angel
    Debras_Angel Posts: 620 Forumite
    First Anniversary Combo Breaker Mortgage-free Glee!
    Yes I'm with other posters, it won't affect those buying the essentials. It may even help boost this year as those people who are thinking of buying luxuries may do before January 2011.
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