24 November 2008


When you listen to the Chancellor this afternoon announcing a cut in the 17.5% rate of VAT, you might wish to bear in mind that it will have absolutely no effect on:
  • the price of a loaf of bread (or any other non-luxury food);
  • the cost of heating your house;
  • rail and bus fares; or
  • the cost of children's clothes

none of which attracts the 17.5% VAT rate.

On the other hand, the price of a Mars Bar may be reduced from 40 pence to 38 pence. Isn't that exciting?

1 comment:

Anonymous said...

The cost of nothing will reduce. Companies will just pocket the difference.