Boosting the British economy 2

Sunday, December 7th, 2008

Back in November, I said that the Government's measures to boost the economy were useless and the reduction in VAT, especially so. Surprise, surprise - research shown to top officials last week shows the whole package to have been a flop.

But these people never learn, do they? It is apparently all our fault. I quote from one Labour party strategist:

'All anyone seems to have noticed was the VAT cut, which they see as pointless. They don't understand what it was about.'

Well excuse me, I know full well what it was all about. It was stunt designed to cast the Labour Party in a good light so they could call an election in 2009 and have a fair chance of winning it. And if it wasn't, then the Chancellor is even more stupid than I thought him to be.

The cost of this futile VAT reduction is £12.5 billion pa which I calculate to be £270/head for everyone in Britain aged 20 or over. If that had been handed out in 3 x £90 vouchers with the proviso that it could not be spent on food, holidays, booze and ciggies, it might have had more impact. Actually, they could afford £317/head because they'd get the VAT back on this leaving a net cost of £270. Yeah I know there are practicalities but it's a thought.