Archive

Posts Tagged ‘deficit’

Warmer weather hotter prices

From Tuesday 4th January 2010 VAT will rise from 17.5% to 20%. Ed Miliband has announced to the BBC that this is the wrong time for a tax rise.

Who will this affect?

The rise in VAT will affect any VAT-registered business that purchases or sells goods or services that are currently subjected to the current standard rate of VAT.

What will not be affected by the VAT rise?

Most foodstuffs, children’s clothing and books will remain zero-rated. Reduced rates will remain on items such as  fuel and power supplies and children’s car seats.

What is the aim of the VAT increase?

To help the UK’s current economy, tackle the deficit and raise £13bn.

Will spending increase?

The Labour leader Ed Miliband has said the average family will have to find an extra £7.50 “each and every week”, resulting in an extra £389 a year.

What is the prediction for 2011?

The BBC have predicted retail sales will fall by about £2.2 billion in the first four months of the year.

The VAT increase has been discussed continuously over the last few months by various political leaders and therefore the public planned ahead. Individuals spent the majority of their ‘Christmas spending money’ over the month of December and personally I have resisted the January sales. To help save money and spend wisely see a previous blog post offering advice on how to look fashionable and not spend a penny or how to provide high entertainment at low costs.

Categories: Blog, Opinion Tags: , , , , ,
%d bloggers like this: