She loves considering nuclear options, doesn’t she?
So copying Labour’s policies from last time.
Not really a nuclear option, but an obvious one when entering a recession.
Let me guess next will be a scrapped scheme and grants for people to buy electric cars and introducing free insulation and solar loans.
got how can they be so dumb -.- half of Reddit would be a better PM than this dumbfuck of a wanna be politician call Truss
How is that going to help when most people wont have any money to spend outside of utility bills.
Little hope for us as the buffoons who put Boris in charge are getting a second spin to put a new PM in place.
Doing the same thing expecting a different outcome… Insanity
Rishi Sunak’s team consider the plan extremely regressive? Isn’t VAT a regressive tax so a VAT cut is progressive?
People cannot afford to buy stuff so I don’t see how it helps I think she might be slightly detached from reality
I’m not an economist, so please feel free to correct me. But there seem to be major, glaring issues she’s missed:
1. That this will mainly be a benefit for those with most disposable income. Who will see by far the greatest savings. To the people saving every penny for energy bills this will be a almost negligible saving.
2. As the cost of living crisis has been caused by supply push inflation. Incentivising extra consumption is not a solution. (Unlike in the 2008 credit crunch when labour cut VAT to get money flowing around the economy).
There are only a finite amount of goods, so lowering their price (via VAT) won’t magically make there more items to buy.
Kind of scary seeing where the 12 year experiment in Tory governance is heading.
Cut taxes without a plan to replace the drop in government revenue is a dangerous game.
VAT to 15% would be a saving of £38bn a year but also a reduction of £38bn of government spending. Knowing the Tories and Liz Truss that will likely be on social care and economic support for the poorest in our society.
This only works if another tax, like say on energy companies, is increased to cover that revenue else it will be give with one hand and take with the other.
Cue every supplier of goods to up their prices by 3%.
She is a useless shite.
Margaret Thatcher had VAT set at 15%. Coincidence? I think not! 😀
No doubt for 1 year then it’ll be put up to 22.5% and that’ll be the new normal.
Where did she learn to deal with inflation? The Erdogan school of letting it spiral out of control while blaming everyone but his own goverment…. Oh wait.
Companies up their prices by 5% and bam more profit. Another Tory policy which will do nothing but help the top of society make more money
VAT is a scam anyway. Our earnings are already taxed… then we get double dipped on VAT
I honestly can’t see how this would really help.
It’s a great headliner policy, but in reality most businesses won’t even reduce prices if this happened, as most businesses are struggling with price rises and passing them onto the consumer.
In my opinion with the worst price rises to come this will barely make a dent, if anything.
So 50% of the country will have zero disposable income or be in debt monthly and another 30% will find they have very minimal disposable income. How can a Vat cut help people who have no money to spend on anything?
Help me understand. If the necessities are food and utilities how does a reduction in VAT help the poor? Utilities are at 5% and most food (and children clothes) are exempt. So if my I’m reduced to feeding myself and keeping myself warm, cooking, washing etc…. Surely reducing VAT to 15% has little to no effect.
that just helps people who still have money to spend. How about suspending any dividend payouts and raises to energy companies?
Making luxuries cheaper wont make people without the money for luxuries suddenly buy them.
Fuel bills need to be controlled or all people will do is pay for food and warmth. We need supplies where we’re not beholden to a foreign govt – which I keep getting told we’re not – but we’re still seeing huge price hikes being declared
If we’re primarily self-sufficient why the fuck are we seeing suppliers going bust and needing to keep raising their prices?!
Wow 5% discount that doesn’t apply to food.
When everything is up practically 50% this is just a kick in the teeth.
Last time the vat was lowered it went up 2.5% more when it went back to ‘normal’.
Expect 22.5% or 25% vat later peeps.
Its a trap.
Or could just spend billions on making UK less reliant on volatile fossil fuels…
..but I guess her donors say no.
Wow, a 4% saving on some things. That will fix the cost of living crisis.
Changes in VAT rate are such a blunt instrument. Yes, a reduction in VAT would help, but a bit like the fuel duty reduction, it only helps a small amount and still relies on the retailers passing on the savings to their customers.
Not to mention, government revenues will already be much higher now due to inflation, so by reducing things like VAT and fuel duty, they are probably still making at least what they made before in revenue.
Our government needs to borrow their way out of this, like they did during the pandemic:
Immediate subsidies on energy bills. Every business and consumer gets their first X number of units of energy each month at a fair, affordable rate, the rest is higher priced by taxation to curb consumption. If energy prices get lower, the subsidy also reduces to keep energy prices flat.
Food, fuel and other essentials. Same as above. Everyone gets X amount discounted each month then they pay more for the rest.
Immediately invest in more sustainable energy, energy storage and farming. Nationalise it, run it properly with well trained and paid staff, and promise to keep it nationalised.
Increase minimum wage, and work with (not against) unions to ensure their issues are resolved. Do the same for the NHS. It’s the only way to get striking workers back to work, and the unemployed “wanting” to work.
Increase taxes on high wealth and high income. Controversial I know, but someone has to pay. Why should those who have worked hard and have nothing, pay and suffer. Their labour has been exploited and eroded away by capitalism over many years and decades. It’s time to give some of it back.
If you are a politician and reading this, please take it seriously!
Edit: minor rewording
This is BRILLIANT news, because the last time VAT was cut it didn’t delay peoples purchasing decisions and then revert to a higher rate after. 22.5% in 2026 anyone. 25%?
Like pissing on a bonfire
How the fuck will that help?
Rent – no VAT
Basic food items – no VAT
Energy – not affected as it’s not on the standard VAT rate
Public transport – no VAT
Council tax – no VAT
Those are the basic costs that people have to cover, and a cut to the standard rate of VAT doesn’t affect any of them.
27 comments
She loves considering nuclear options, doesn’t she?
So copying Labour’s policies from last time.
Not really a nuclear option, but an obvious one when entering a recession.
Let me guess next will be a scrapped scheme and grants for people to buy electric cars and introducing free insulation and solar loans.
got how can they be so dumb -.- half of Reddit would be a better PM than this dumbfuck of a wanna be politician call Truss
How is that going to help when most people wont have any money to spend outside of utility bills.
Little hope for us as the buffoons who put Boris in charge are getting a second spin to put a new PM in place.
Doing the same thing expecting a different outcome… Insanity
Rishi Sunak’s team consider the plan extremely regressive? Isn’t VAT a regressive tax so a VAT cut is progressive?
People cannot afford to buy stuff so I don’t see how it helps I think she might be slightly detached from reality
I’m not an economist, so please feel free to correct me. But there seem to be major, glaring issues she’s missed:
1. That this will mainly be a benefit for those with most disposable income. Who will see by far the greatest savings. To the people saving every penny for energy bills this will be a almost negligible saving.
2. As the cost of living crisis has been caused by supply push inflation. Incentivising extra consumption is not a solution. (Unlike in the 2008 credit crunch when labour cut VAT to get money flowing around the economy).
There are only a finite amount of goods, so lowering their price (via VAT) won’t magically make there more items to buy.
Kind of scary seeing where the 12 year experiment in Tory governance is heading.
Cut taxes without a plan to replace the drop in government revenue is a dangerous game.
VAT to 15% would be a saving of £38bn a year but also a reduction of £38bn of government spending. Knowing the Tories and Liz Truss that will likely be on social care and economic support for the poorest in our society.
This only works if another tax, like say on energy companies, is increased to cover that revenue else it will be give with one hand and take with the other.
Cue every supplier of goods to up their prices by 3%.
She is a useless shite.
Margaret Thatcher had VAT set at 15%. Coincidence? I think not! 😀
No doubt for 1 year then it’ll be put up to 22.5% and that’ll be the new normal.
Where did she learn to deal with inflation? The Erdogan school of letting it spiral out of control while blaming everyone but his own goverment…. Oh wait.
Companies up their prices by 5% and bam more profit. Another Tory policy which will do nothing but help the top of society make more money
VAT is a scam anyway. Our earnings are already taxed… then we get double dipped on VAT
I honestly can’t see how this would really help.
It’s a great headliner policy, but in reality most businesses won’t even reduce prices if this happened, as most businesses are struggling with price rises and passing them onto the consumer.
In my opinion with the worst price rises to come this will barely make a dent, if anything.
So 50% of the country will have zero disposable income or be in debt monthly and another 30% will find they have very minimal disposable income. How can a Vat cut help people who have no money to spend on anything?
Help me understand. If the necessities are food and utilities how does a reduction in VAT help the poor? Utilities are at 5% and most food (and children clothes) are exempt. So if my I’m reduced to feeding myself and keeping myself warm, cooking, washing etc…. Surely reducing VAT to 15% has little to no effect.
that just helps people who still have money to spend. How about suspending any dividend payouts and raises to energy companies?
Making luxuries cheaper wont make people without the money for luxuries suddenly buy them.
Fuel bills need to be controlled or all people will do is pay for food and warmth. We need supplies where we’re not beholden to a foreign govt – which I keep getting told we’re not – but we’re still seeing huge price hikes being declared
If we’re primarily self-sufficient why the fuck are we seeing suppliers going bust and needing to keep raising their prices?!
Wow 5% discount that doesn’t apply to food.
When everything is up practically 50% this is just a kick in the teeth.
Last time the vat was lowered it went up 2.5% more when it went back to ‘normal’.
Expect 22.5% or 25% vat later peeps.
Its a trap.
Or could just spend billions on making UK less reliant on volatile fossil fuels…
..but I guess her donors say no.
Wow, a 4% saving on some things. That will fix the cost of living crisis.
Changes in VAT rate are such a blunt instrument. Yes, a reduction in VAT would help, but a bit like the fuel duty reduction, it only helps a small amount and still relies on the retailers passing on the savings to their customers.
Not to mention, government revenues will already be much higher now due to inflation, so by reducing things like VAT and fuel duty, they are probably still making at least what they made before in revenue.
Our government needs to borrow their way out of this, like they did during the pandemic:
Immediate subsidies on energy bills. Every business and consumer gets their first X number of units of energy each month at a fair, affordable rate, the rest is higher priced by taxation to curb consumption. If energy prices get lower, the subsidy also reduces to keep energy prices flat.
Food, fuel and other essentials. Same as above. Everyone gets X amount discounted each month then they pay more for the rest.
Immediately invest in more sustainable energy, energy storage and farming. Nationalise it, run it properly with well trained and paid staff, and promise to keep it nationalised.
Increase minimum wage, and work with (not against) unions to ensure their issues are resolved. Do the same for the NHS. It’s the only way to get striking workers back to work, and the unemployed “wanting” to work.
Increase taxes on high wealth and high income. Controversial I know, but someone has to pay. Why should those who have worked hard and have nothing, pay and suffer. Their labour has been exploited and eroded away by capitalism over many years and decades. It’s time to give some of it back.
If you are a politician and reading this, please take it seriously!
Edit: minor rewording
This is BRILLIANT news, because the last time VAT was cut it didn’t delay peoples purchasing decisions and then revert to a higher rate after. 22.5% in 2026 anyone. 25%?
Like pissing on a bonfire
How the fuck will that help?
Rent – no VAT
Basic food items – no VAT
Energy – not affected as it’s not on the standard VAT rate
Public transport – no VAT
Council tax – no VAT
Those are the basic costs that people have to cover, and a cut to the standard rate of VAT doesn’t affect any of them.