VAT ‘boosts sales’
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Cut in VAT ‘boosts retail sales’
Small businesses say the VAT cut has had no impact on their trade - WRONG! Moreover; "The chancellor should extend the duration of the cut to July 2010, when the economy will be stronger."
The government’s much-criticised cut in VAT is working and has led to a big boost in consumer spending, according to a leading economics consultancy.
The Centre for Economics and Business Research (CEBR) says that the cut, which took effect on 1 December 2008, has led to £2.1bn of extra sales. The centre says the growth in retail spending is “remarkable”. It argues that the temporary cut of 2.5%, which expires in January 2010, should be extended for six months.
“Annual growth in retail sales accelerated from 1.6% in November 2008 to 2.6% in December. Sales growth accelerated further in January to 3.2%, and registered a marginal decline in February to 3%,”
Isn’t it time we all started to understand the government are having a real go at getting out of the recession. This recession was brought on by US and London City bankers who should have burned at the stake by now. I have never voted for the Labour party: never. But guess who gets my vote next year!
