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

Riven, I think interest rates will go up in the not too distant future as we need to get a grip on inflation which is double what it should be.

It only hurts the low income families.

There seems to be no letup on the amount going out on essentials but no increase in income to make up some of the difference.

I'm really worried and think it will all have a knock on effect and in 3 years time or sooner we will be in a depression similar to USA in 1930's.

What do we do as a country when no one has any money and there is no economy?

actually i think this will have a much greater effect on higher-income families as the kind of thing VAT affects most are not essentials.

if our boiler broke it wouldn't be the additonal VAT i'd be complaining about, believe you me....the initial 1k cost would be the killer, even VAt-exempt!

Riven, interest rates control inflation in the economy as a whole but they won't necessarily control inflation of a particulary good or set of goods eg food

I don't mind too much about the rise in VAT, but I think the duty on fuel is ridiculous. That's what's going to have the biggest effect because it impacts on the cost of food, transport, clothes, everything really.

'almost nothing we spend money on incurrs that rate of VAT (mortgage being the main expenditure)'

so you don't buy food then?

the cost of that will rise because the cost of transporting it will increase.

I love the "only 2.5% more" argument .... any increase is a blow when you are already struggling, and whilst VAT isn't payable on most foodstuffs, it's inevitable that food prices will go up shortly because of this as distribution costs (fuel) have got to rise. It all filters back in the end.

I may be cynical but I also believe that the VAT rise will be used as an excuse by less scrupulous retailers to increase prices even further .... without challenging every single increase (assuming you can recall what something cost last year) it's going to be very easy for them to airily wave their hands in the air and blame 1) VAT increase, and 2) increased distribution costs .... the second figure of course being something consumer cannot determine.

Like many others, our household income hasn't increased in the last couple of years. Yet food, fuel, utilities, commuting costs all have. We cannot ride any more increases to basic living costs without cutting into essentials, because, we have already ditched the "nice to haves". Meanwhile, I work (FT) 7 days a week most of the time, and anti-social hours to boot, yet it feels I am going backwards not forwards despite my best efforts. I think I read somewhere that the VAT increase will cost the average family about £500 a year if they don't adjust their spending habits ..... that's £40 a month then I need to shave off our outgoings. Makes me sick, absolutely sick ...... this definitely isn't something trivial for us, or for 100s of 1000s of other families.

If you are already having to watch the pennies, then yes a VAT increase will affect you.

YABU

Nice that it doesn't affect you, but you cannot honestly believe that the rise is unnoticeable for all people.

WRT takeways, I thought you paid VAT on hot food (wherever consumed) or food consumed on the premises it was purchased? Isn't this why you get two prices in sandwich shops - the take-away price, and the eat-in price which has VAT added? this seems to be what it says here.

I don't think the 2.5% rise on its own is a big a deal as people make out. Most of us hardly noticed the 2.5% reduction last year.

Plus to a degree you can avoid VAT. Food & childrens clothing is 0% VAT. Much of the goods like washing machines, fridges. Well if you are on a low income you are unlikely to be buying new anyway so again you will avoid it.

No tax rises are good but as they go, this one is not a big deal.

The real problem will be companies who use this as cover to increase their prices more than 2.5%

VAT is going up all over Europe and ours is not the highest
We have had it to good for to long in this country

Good news I heard on the wireless this morning that the 99p land shop will not be putting its prices up so you should all go and shop there

"Much of the goods like washing machines, fridges. Well if you are on a low income you are unlikely to be buying new anyway so again you will avoid it."

So ignoring the fact that if you are on a low income and your washing machine breaks you would struggle to pay for a new one without the VAT increase?

"We have had it to good for to long in this country"

Do you really not understand how significant a 2.5% rise in prices is?

Are you innumerate?

can the people who are constantly dismissing this as "oh it's only 2.5%" please try and look outside their own narrow view for a moment?

it was only 6 months ago that i was sitting crying in some toilets because we had £22 left over after non-avoidable bills (accommodation, council tax, utilities) in a month, nothing, literally nothing left to cut back, and i was thinking "fuck, i need to buy tampons this week", 2.5% is a lot to some people when it comes to the most basic essentials, esp when it's spread across many more items than you'd realise because shops will undoubtedly use this to sneak in the odd price rise or two anyway

really, if 2.5% isn't a lot to you on a huge number of every day goods (not luxuries), then i'm glad for you

but don't dismiss the impact of this for the rest of it

From my experience most things in the shop cost are always marked at 0.99, 1.99, 199.99 etc. etc. Dont think VAT increase will be really affecting anything...

Frgr, I am sorry to hear you are struggling, but there are always half price deals, I never buy tampons at a full marked price...

I can't believe the "I'm alright Jack" attitudes expressed by some on this post. I say that as someone who already struggles but who also appreciates that as I'm in work (albeit shit hours, shit pay) I am more fortunate than others who are out of work so God knows how they feel. To suggest anyone struggling should go and shop in the 99p shop (yeah right, so the poor must live on biscuits, crisps and the occasional tin of beans ) is really quite contemptuous. If you are lucky enough to be able to get to Poundland or similar, and are watching the pennies, then no doubt you already shop there, but its food selection is pretty non existent. As already explained, food may be 0% VAT rated, but distribution costs aren't.

No-one likes tax rises - agreed - but this is one which is across the board, whatever your income, and affects basics despite claims to the contrary. It is a big deal for many families and will affect their basic standard of living ..... stuff like how much heating they can afford to use, and the quality/quantity of food they buy.

Its not just about you though, its about foreign investment too. When the uk vat rate went down to 15 per cent, cross border shopping ( ireland- NI) vastly increased.
What do you think will happen when it goes up?

I have just been out to a major shopping centre in the south, it was mad in there. Don't think it has squirmed into a lot of peoples minds yet!