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to not get the fuss over the VAT rise

(139 Posts)
teceral Tue 04-Jan-11 12:34:01

Its only going up by 2.5%, something that costs £10 now costs £10.21, its not a major deal. It also not on food etc. AIBU to think its much ado about nothing

sarah293 Tue 04-Jan-11 12:35:13

Message withdrawn

rubyslippers Tue 04-Jan-11 12:35:13

it's on utilities
and petrol and y'know essentials

add all that up and it will be an extra few hundred quid a year for most families

lots of whom are already struggling and account for every penny as it is

kayah Tue 04-Jan-11 12:35:37

it soon ads up... and inflation may rise, which isn't a good thing as we know it

rubyslippers Tue 04-Jan-11 12:35:41

oh yes Riven - sanitary towels etc - still irks me to pay VAT on those

rubyslippers Tue 04-Jan-11 12:36:17

oh, and when you car or boiler breaks down and you need parts and labour and VAT on top - another chunk of money gone

compo Tue 04-Jan-11 12:37:17

Yes the petrol one is a killer
it's also on fun things like alcohol, holidays, meals out, clothes, phones, cinema, DVDs, etc etc
january is bleak enough as it is
tis all pants

mumeeee Tue 04-Jan-11 12:38:13

I discused this with my DH yesterday and we came to the conclusion that it wouldn't male that much diference. It is 2.5 pence to a pound. So if you usually spend £100 on your weekly shop it will now cost 102.50

MissAnneElk Tue 04-Jan-11 12:40:28

VAT has a greater effect on low income families so it's unfair. The increase in fuel prices (due partly to VAT rise) will affect the cost of everything which will again have a disproportionate effect on people on a lower income.
The honest thing to do would be to increase income tax but a Conservative led government will never do that.

teceral Tue 04-Jan-11 12:40:47

Its only going up by 2.5% though.

altinkum Tue 04-Jan-11 12:41:04

Message withdrawn at poster's request.

altinkum Tue 04-Jan-11 12:42:50

Message withdrawn at poster's request.

SparklyJules Tue 04-Jan-11 12:43:33

It's unfair at the moment. Our economy needs us to spend money. A vat increase will mean less spending.

Elemental Tue 04-Jan-11 12:43:56

It's another thing to add to the squeeze in all directions, everything's gone up and going up more - food, gas, electric, travel, etc. It's one of those things that people's "cost of living" wage increase should cover, but even if you're lucky enough to get that as a rule, I don't think many people got it last year.

gretalse Tue 04-Jan-11 12:44:06

YANBU it is only a small rise and the VAT in this country is still much lower than the majority of other European countries

goingforit Tue 04-Jan-11 12:45:18

It comes at a time when petrol, rail and bus fares, have risen this week.

EMA frozen for new applicants from this month.

Child Benefit rises on hold for 3 years.

Possible council tax rises.

Even more probably little or no wage rise - certainly not covering losses.

It all makes a heck of a difference

rodformyownback Tue 04-Jan-11 12:45:29

I didn't think it was on sanitary products anymore?

I do think income tax is a more honest and fair way to go, but tbh VAT is a fairly painless tax. It didn't do anyone much good when Gordon reduced it to 15% and it won't do much harm when it goes up either.

altinkum Tue 04-Jan-11 12:46:30

Message withdrawn at poster's request.

Tootlesmummy Tue 04-Jan-11 12:46:59

MAE Income tax increase is not the way to resolve all the issues, and I for one would not advocate that.

The 2.5% increase is low but I do feel that it will mount up for families who already have to watch their expenditure so closely.

rodformyownback Tue 04-Jan-11 12:49:56

Checked www.hmrc.gov.uk/vat/forms-rates/rates/goods-servic es.htm. I was wrong - you have to pay 5% VAT on sanitary products. Don't know if the reduced rate is increasing.

tyler80 Tue 04-Jan-11 12:50:31

Sanitary products have a reduced 5% vat rate which I don't think is increasing.

MissAnneElk Tue 04-Jan-11 12:50:50

Tootles why not increase income tax if taxation has to rise?

ivykaty44 Tue 04-Jan-11 12:53:40

It will not make a hugh difference to those with a decent income.

For people on a low income it will have a great impact and the effect will be less money for them to spend.

I would have been happier to see income tax go up by 1% and the tax threshold rise further

sarah293 Tue 04-Jan-11 12:53:49

Message withdrawn

huddspur Tue 04-Jan-11 12:55:08

I don't think theres any scope for an income tax rise to be honest. If income tax was increased then our tax rate competitiveness would be damaged more than a VAT rise would.

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