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Saturday 13 February 2010

2.5% more pain coming our way.



Yup you've guessed it. VAT is on the rise whoever gets in at the next election. I can't say that I'm surprised.

A rise in VAT is looming whichever party wins the general election, as Labour and the Conservatives draw up plans to balance Britain’s books.

Alistair Darling and George Osborne, the Shadow Chancellor, are both considering raising VAT to as high as 20 per cent — the European average — from the current rate of 17.5 per cent.

However tax rises are not going to help business grow as this rise will be partially offset by consumers spending less.

What we really need is swingeing cuts in the unproductive public sector. Ie, mass redundancy notices for such posts as "Diversity Outreach coordinators" and the like. We really can't afford that nonsense.

At least someone has the balls to say it.(Even if I won't be voting for his party this time). And no, I'm not voting Labour or Limp Dem.

Ken Clarke, the Shadow Business Secretary, told The Times that any post-election cuts imposed by a Tory government would be worse than the squeeze of the early 1980s. “We are going to have to be much tougher on public spending than Margaret Thatcher ever was,” he said.

Having worked for a couple of years working in a branch of the MOD, I can assure you that there is plenty of fat that can be trimmed with no detriment to our  armed forces.

H/T to the Times for the info.