SPEND, SPEND, SPEND (From Bournemouth Echo)
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SPEND, SPEND, SPEND
7:00am Tuesday 25th November 2008 in
SHOPPERS in Dorset and Hampshire have been urged to spend, spend, spend in the run-up to Christmas following the 2.5 per cent cut in VAT.
Local retailers hope the tax cut, combined with a host of special offers in the shops, could give them a much-needed boost in the remaining month before Christmas.
Nigel Hedges, president of Bournemouth Chamber of Trade and Commerce, said: “We back any move that encourages people to come here and embark on a spending spree.
“With Christmas just round the corner, the timing couldn’t be better and we hope the VAT cut coincides with some really good offers in the shops.”
In his pre-budget report, Chancellor Alistair Darling reduced VAT from 17.5 per cent to 15 per cent for 13 months from Monday.
Mr Darling warned that Britain would officially enter recession next year but said it would be “longer and deeper” without the latest bid to kick-start the economy.
Jeff Allen, chairman of the Poole and District Chamber of Trade, said his members had told him times were tough.
He said: “Anything that helps to bring some business in is welcome. 2.5 per cent is not a huge amount, but it all helps.”
Steven Connolly, centre director at the Dolphin Centre, Poole, said retailers had reported an upturn in the last few weeks, boosted by the early sales, particularly the Marks and Spencer one-day, 20-per-cent-off sale.
“The VAT cut can only support this and encourage more people to come to the shops,” he added.
But Peter Matthews, centre manager at Bournemouth’s Castlepoint, was unimpressed by the move. He said: “As a retailer 2.5 per cent isn’t a big discount. I don’t think it will turn the nation into shopaholics.”
He said the increase in petrol and rises in utility prices during the summer had put a strain on the purse strings.
“I think it is difficult for some people to make ends meet. They are perhaps being a bit more careful,” he said.
Castlepoint saw two per cent more cars last week than during the same week the previous year and the M&S one-day sale made for the fifth largest day since the centre opened. Mr Matthews said: “That’s positive for us and I think it is due to free parking. It’s not all doom and gloom.”
Comments(18)
In Absentia
says...
8:42am Tue 25 Nov 08
TG777
says...
9:01am Tue 25 Nov 08
Financial stimulus my a**e !!
Emulated
says...
9:11am Tue 25 Nov 08
O'Really
says...
9:14am Tue 25 Nov 08
Bournehammer68
says...
9:52am Tue 25 Nov 08
I think I'll invest it all in shares.
what a load of tosh, do they not realise that if you don't have anything in your pocket they can knock 50% off the price and I still couldn't buy it.
It really is time for the people to get rid of this government. why wait til a general election. nationwide walk out now as a vote of no confidence!!!!!
V for VENDETTA
GB916
says...
10:08am Tue 25 Nov 08
arettes and booze go up,again only if you are super rich will you benefit from these tax cuts,spend spend spend,i think not,i have no money to spend,so how can i save any,they must think we arrived from another planet to believe we canbe fooled by these tax cuts....
Zzzz
says...
10:26am Tue 25 Nov 08
Adrian XX
says...
10:35am Tue 25 Nov 08
To get the country into such huge debt for people to save merely pence on most purchases is just plain stupid.
VAT is a good tax since it is progressive. It has minimal effect on the poor who don't spend a lot and a greater effect on the rich. In the UK, food and kids clothes are zero-rated, which means the advantage to the poor is greater. Any VAT give away by the government is going to help the rich more than the poor.
A better approach would have been to reduce or remove employers national insurance. This would allow more people to keep their jobs. This could have been paid for by removing the upper earnings threshold for employees national insurance (currently £670 per week).
Kevicious
says...
10:48am Tue 25 Nov 08
Work less, spend less, live more simply. It is possible...
pd7
says...
10:56am Tue 25 Nov 08
You can get much better deals by shopping around .
The only people to win in this are the people who make new price tags.
The rest of us look on and dream of an election
Julie G
says...
11:45am Tue 25 Nov 08
The best example given was on the radio, that the price of a Mars bar would be reduced by 1p.
Reduce our personal tax payments. With extra toot in your pocket British people by their very nature would be more inclined to go out and spend it/have a treat in these dark times - which would probably have a better effect on boosting the economy
djd
says...
12:13pm Tue 25 Nov 08
A better idea would have been to cut the rate of income tax or increase tax allowances- that would have put the money back in people's pockets.
PokesdownMark
says...
3:21pm Tue 25 Nov 08
At least there is general consensus that that its a totally stupid idea. The largest bills we pay; mortgage, council tax and utility bills are not even subject to VAT!
paul sparks
says...
4:07pm Tue 25 Nov 08
When I see news in your paper that some of Bournemouths 6000 public sector workers have been made redundant from there gold plated non jobs positions. I think that day is far off !! PJS New Milton
Emulated
says...
4:15pm Tue 25 Nov 08
paul sparks wrote:When I read that some of Bournemouths 6000 public sector workers have been made redundant I thought at last.
When will there be 'a real resession? When I see news in your paper that some of Bournemouths 6000 public sector workers have been made redundant from there gold plated non jobs positions. I think that day is far off !! PJS New Milton
Pity it wasn't for real as it would have saved a council tax increase next year.
rook
says...
5:22pm Tue 25 Nov 08
TG777 wrote:Sorry TG, it's not even that good!
This reduction in the VAT rate is laughable- does the government really expect for us to all to start spending again after this reduction reducing a £50 spend to about £48.25!! Financial stimulus my a**e !!
A £50 spend is really £42.55 plus 17.5% VAT (£7.45). When you add 15% VAT to £42.55, you actually get £6.38 for a total price of £48.93.
So while our glorious Government trumpets on about 2.5%, it is in fact only a 2.2% price reduction. Another example of what they call 'spin' and the rest of us refer to as lies.
Either way as everyone has said, it will make no difference. The financial outlook is still bad so everyone reduces spending and saves more. The recession will happen, and it will end and the economy will grow again - the problem is that the amount of current borrowing is going to mean that taxes have to be excessively high. The UK will be left behind the rest of the world when the 'good times' return as no one will have money to spend because we are paying for the Government's current crazy gamble.
tim m
says...
6:31pm Tue 25 Nov 08
Big Bad Baz
says...
2:09pm Wed 26 Nov 08
Also what is the good of raising tax bands for the 2 million unemployed, predicted to be 3 million next year. If your income is zero increasing the tax free pay from £6,035 to £6,475 is not going to make a scrap of difference. Similarly with the pensioners who's income is less than £6,000 pa. What benefit is it to them?
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