I’m currently watching the Pre-Budget report on the BBC News website and Alistair Darling has announced that VAT will be cut from 17.5% to 15% starting on Monday until 2010. Government borrowing will rise to £78bn this year and £118bn next year saying that/ doing nothing would create a “deeper and longer recession”.
I’m sure this is great for the shops; I’m sure that £9.99 DVD isn’t going to go down to £9.74 so their profits just go up by 2.5% hooray for shops! On the bright side though, the price of jaffa cakes isn’t going to change since they’re not charged VAT in the first place, being cakes and all.
The real question is; are you going to spend, spend, spend? Go on.. buy the new MacBook Pro; it’ll save the economy.. and you’ll save 2.5% :P
