to not get the fuss over the VAT rise

[teceral]

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

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

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

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

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

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

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

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.

Its only going up by 2.5% though.

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

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.

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

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

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.

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.

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

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

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

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

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.

I can see what you are saying - it is only 2.5% and to some people it wont make a huge difference, however, it will have an affect on those who are already struggling :(

There were long queues at the petrol stations last night and I though that I should fill up - but when I realised that topping up the car (about half full) would cost around £35 - the extra vat would only be another 87.5p I decided it wasn't worth all the queuing and messing around!

But, in general, it's going to have an affect on those who can least afford it.