Wednesday, January 14, 2009

Gordon Brown out of touch on VAT!

Gordon Brown is totally out of touch with what hard pressed people are actually spending their money on.

At today's Prime ministers questions he said that the VAT cut was saving the average family £5 per week. If you calculate that you would need to spend £235 per week on goods and services which attract VAT. (£1,018 per calender month or £12,220 per year).

So, after you have paid for all those things that do not have VAT on them, like rent/mortgage, council tax, food, domestic gas those things that do attract VAT but have had their duty raised, like cigarettes, beer and petrol, do you have £235 left? I don't. Neither does anyone I know.

Which planet is he living on? On the other hand for the same money he could have raised personal income tax allowances to £10,000 thus putting £67 per calender month in my pocket, or about £15 per week! Three times as much as the government claim and much much more than that over what benefit I get from the VAT cut.

No comments: