Now, if the government wanted to help the consumer, why not cut back on things that people have voiced opinions on? Like petrol duty, stamp duty etc etc..
They did cut it on petrol and then merrily upped the price so that we don't make a saving!!!
Has anyone else read that when it goes back up they are planning on upping it to 18.5%........
This government are making huge mistakes IMHO that are going to ruin this country for years and years to come.
BTW for anyone who wants to read, here is a something about the retailers
Shops warn of struggle to deliver cut in time
By Elizabeth Rigby and Tom Braithwaite
Published: November 26 2008 02:00 | Last updated: November 26 2008 02:00
Retailers were frantically scrambling yesterday to work out if they could deliver the chancellor's cut in value added tax by Monday, with many complaining it was too big a task to complete in seven days.
Their concerns are so
pronounced that Sir Philip Green of Arcadia and Sir Stuart Rose of Marks & Spencer led a conference call of more than a dozen top retailers to discuss if they could deliver a co-ordinated cut in prices by Monday.
The decision by Alistair Darling to cut VAT from 17.5 per cent to 15 per cent from December 1 will reduce prices by 2.1 per cent on the shop floor and will be in force until the end of 2009.
Sir Stuart, the executive chairman of M&S, said the changes were difficult in categories such as children's wear, where VAT is added only to clothes for youngsters aged 14 and over, and food, where the levy is charged only on a few items, such as gift hampers.
The retailers have been trying to sort out the logistics of putting in place the change and a statement is expected today outlining exactly what sort of price cuts they can deliver and when. "Are retailers minded to pass it on? Absolutely," said Sir Stuart. "Is there a logistic nightmare? Yes. Will we get there by Monday? Probably."
But retailers were bemoaning the timing of the pre-Budget report decision. "Trying to help consumers is a good thing, but the timing of this is just awful," said a big clothing retailer. The cuts clash with one of the busiest periods in the retail calendar, coming around the time when most people receive their final pay cheque before Christmas.
Argos, one of biggest general merchandise retailers, said that while it intended to pass on the temporary cut in VAT it could not be sure of achieving it by Monday. It said: "This is a complex issue to manage properly at short notice and, while we will do everything we can to ensure that these changes are implemented within the government's time-frame, we cannot guarantee that all necessary changes will be in place by the Monday deadline."
Verdict, the retail consultancy, said the process was not as simple as introducing a blanket 2.5 percentage point reduction on every item carrying VAT. "With retailers wanting to maintain pricing practices such as price points ending in 99p or whole pounds, not all prices will change. The prices of the cheapest goods are least likely to be revised, with retailers making bigger adjustments to lines where they hope to secure competitive advantage," it said.
The VAT reduction may well be eclipsed in the minds of consumers should they compare it with the aggressive promotions being offered by retailers as they look to stimulate spending in the run-up to Christmas. Many have been cutting prices by 20 per cent in recent days, with M&S staging a "guerrilla" one-day sale last week.
I for one don't expect to get anything off in any of the shops, I think that they will pocket the difference.
