What will the VAT hike proposed by ConDem ToryLib do to the average Brit?
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Answers (15)
The main thing that will affect me is the rise in petrol prices. I drive a lots for work, doing about 20k a year, so even more on fuel will just be a nightmare. We will have to be more savvy food shopping to account for the extra costs. But in terms of buying big things, e.g. electical and cars we will try and wait until it goes back down (if it does)
Broadly speaking, the average Brit will get poorer and the Government will get the money! It never changes, doesn't matter what party the government is... in the end Joe Public pays.
I think it will slow people buying things down, big time, people will begin to think twice about spending money, i know i will
well i think it is going to hit people hard the downturn was a lot easier than most people expected because of the reduction in VAT but even though we are now recovering(apparantly) the increase to 20% will be a big step , the bigger your cars engine the more it will affect you as will the amount of miles driven on average in a week
i dont know if we are recovering. look at the jobs market and those unemployment figures....they are a good guide to what is going on.....low unemployment is normally an indicator that things are pretty good
lol i said apparantly
To be flippant, I suppose that 20 rather than 17.5% is easier to calculate. To be serious and apart from the obvious point that goods are going to cost everyone more, economists say that it may cause a 'double-dip' recession and charities say that it will have a big effect on them by adding to costs and reducing available funds .
Completely agree with this. But to be honest with you the increase is really not that noticeable on everyday items. it the T.V's, the laptops, etc.that will feel the pinch.
yes and there will be a bumper Xmas because the deals will be out there and companies will be trying v hard to get our business before the rise.
yes...like we need more consumables
Big purchases will decrease and the minor purchases will stay the same. I'll be extremely surprised if any of the purchases increase from when the new tax rate comes in.
im sure all that will happen is prices will fall, the white goods sellers are surely going to drop their prices and take less margin
I'm not even sure though that all companies will lower their prices, just because of the VAT increase.
So manufacturers get skinter as well as Joe Public ........ and still the money pours in to the government
Everyone will be of pocket and there's no way to avoid it...
I think it will boost sales towards the end of the year as everyone will be doing their best to try and make any large purchases before the rise comes into affect and will no doubt skew the yearly end figures. I know that I need to buy certain larger purchases that could normally wait and be spread out over the year but I will feel more pressurized to buy these things before the end of the year. After that the changes may not be that noticeable on a daily basis but it will make another dent in our already holey pockets!!
Well ...it will happen 7 Jan I think it is. We will all get hit but it could be worse it could have been 25%. So to be honest after a short while we won't really notice it. What we have to watch is that the Treasury use the money well to be bring down the UK debt and not fritter it away or give it back to the rich. So all the own brands etc and other ways to save money will be even more important next year.
the rich will always get richer and the poorer get poorer. personally i dont see why we are sending billions overseas to countries like Africa before sorting out our own domestic problems. They (as in the debt receiving 3rd world countries) fritter away the money just as easily as we can. if we stopped sending the money they might have to start spending their money wisely
the third world countries are likened to the benefit claimers that cant be bothered to work
i didn't really notice it when the rate was reduced to 15%, but didn't make any big purchse during that time and a lot of shops kept the same prices it seems. mind you that means that we will have had a jump from 15 to 20% in just over a year. that will probably hurt if you compare year on year spending
....but they did give us the cash back at the cash register - a clever coy that means we now have cash in our pocket to spend
not meaning to sound cynical, but a lot of stores will increase their prices slowly between now and the new rate increase. Then when the VAT hits 20%, they will claim to be offering their goods at a 'special offer' exclusive of the VAT increase.
The simple anwser is it will increase everyones cost of living.
The extra 2.5% next Jan 2011 is expected to add an average of 425 pounds annual expenditure to each household
it will increase everyones cost of living.that you can be sure of
it will make it that bit more harder, everybody noticed that they were spending a lot less with the cut and now its going back up people will find that people will have to lower their living costs.
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Yes and there was a very interesting thing about the supermarket shop. Someone asked people in the street if items were vatable or not. And surprising things had no vat while others did. Not just the no vat thing on kids clothes. So it 's worth knowing what has vat and what hasn't