That does make some sense claig!
Income tax holiday for a year would be lovely, although they would never do that because it would be so horrible when it came back, and that is closer to the general election. I predict they will continue this path for another year or so, and then once the run up to the next election starts, they will cut the 50p rate of tax, cut business taxes, and possibly cut NI for individuals.
I do agree with Ed Balls that the VAT rise was a big mistake - it is a blanket rise, so affects lower incomes disproportionately, and really does make people think twice about spending. It is also CRIMINAL the way tax is applied to petrol - we are taxed twice, because every litre of fuel is priced in 2 parts - the cost of the fuel, and then the duty, and THEN VAT @ 20% is applied to the whole thing, so we pay 20% of the duty AGAIN in a 2nd tax.
Targeted cuts to keep the economy moving are essential, but Gideon has this bee in his bonnet about 'not being blown off course'.
And I just read my previous post back and am mortified at having written they're, not their.
I do know the difference really!