Guest 640- Registered: 21 Apr 2007
- Posts: 7,819
This has been a very depressing week across the UK's retail sector. Literally thousands and thousands of people are losing their jobs or have lost their jobs already. Legendary names like Habitat and Moben kitchens have collapsed. The Jane Norman retail chain has closed with the loss of 4,000 jobs. The TJ Hughes chain has closed and I believe thats another 4,000 jobs as well.
Although recent government figures did show a drop in unemployment levels I'm afraid to say it looks like the gains will be shortlived.
And there's more...Thorntons the noted chocolate purveyor is closing 180 stores and Carpetright is axing 50 of those huge type warehouses...staff all going for a Burton.
This is a pretty damning picture. Was George Osborne right to increase VAT to 20% ??...its beginning to look like that was a strategic error as experience shows us that the retail sector is very sensitive to any movement in VAT. In buoyant times the increase might have been absorbed but these arent buoyant times. Households everywhere are reeling from the extra costs in petrol, utilities...well the list goes on...and the High St is feeling the impact.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
So PaulB - what public spending would you have cut instead of putting up VAT?
Or, what other taxes would you impose instead?
These really are the only choices.
Forget the irresponsible tosh coming out of the opposition, they got us into this mess in the first place. Not that there is anything at all that they have said constructive.
Brian Dixon
- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
osbourne was warned by goverment colleages and the cbi not to put vat up,but unfortuntly it fell on deaf ears.its a case of i know better syndrome.
Guest 640- Registered: 21 Apr 2007
- Posts: 7,819
Whatever the reason how we got here, we are here. The High St is in chaos, the government have been in power for over a year. The real question that needs to be asked is ...what are they going to do about it? what are they going to do to stimulate the economy...to get people spending. Some household names are going to the wall and according to retail experts pontificating on Sky News last night.. there are more to come.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Brian - there is no such thing as a free lunch. Government colleagues in doing so were urging greater cuts rather than tax rises. Many in the CBI likewise. No matter how you go about it 1 + 1 will always make 2 though Gordon Brown ran the economy as if it made 11....
Guest 645- Registered: 12 Mar 2008
- Posts: 4,463
PaulB
Not to mention Habitat..The problem with the increase in VAT is that it has made goods more expensive to buy. That's a fact. With economic uncertainty people are no longer willing or able to splash out on large white goods etc. The knock on effect is what we now see ...chains closing as their cash flows dry up.The fall in production,drop in sales,shop closures etc coupled with the resulting rise in employment with more people on the dole puts a strain on the govts coffers. Less revenue in tax,health insurance etc but increases outgoings on unemployment benefit ,back to work schemes and so on. It's false economy.
A reduction in VAT may stop the slide and give the economy a welcome shot in the arm and by increasing the govts incomings lessen the need for the continued draconian style cuts.
Marek
I think therefore I am (not a Tory supporter)
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
The temporary reduction made by Brown made no difference. In my case it cost my business 3 times to implement as the total all my clients saved over the whole 13 months. Cut VAT and you will simply displace the problem elsewhere, the problem being the deficit. The public end up paying one way or another.
Brian Dixon- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
barryw,not asking for a free lunch,but to go back to some sort of reallalty.vat at 17.5 or 15% works for me but osbourne and the tory goverament have dug there heels in.the thing i can hapening is that this once great coutry [rumor has it] wil go to the dogs like greese.
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
Only yesterday I stopped in front of the British Heart Foundation in Castle Street and saw that some furniture had been reduced in price by two thirds.
I also noticed that since the last General Election, the national debt is increasing, so technically, Barry, the goal to reduce the national debit through austerity cannot be achieved.
It will only be a matter of time before more and more people demand a drastic review of the super-rich incomes and assets.
Guest 645- Registered: 12 Mar 2008
- Posts: 4,463
There is no VAT here but there is a Good Services Tax (GST) that was increased this month from 3% to 5% amid all sorts of opposition.
At Dominics place of work their sales are UP on last year. This month he has personally sold 17 AppleMacs @ £799 each and 36 laptop and desk top computers @ an average of £400 each.
So a lower VAT could increase sales if Jerseys sales are anything to go by.
Marek
I think therefore I am (not a Tory supporter)
Guest 698- Registered: 28 May 2010
- Posts: 8,664
Jersey's economy is hardly a bellwether of the British economy generally, Marek.
I'm an optimist. But I'm an optimist who takes my raincoat - Harold Wilson
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
i bet that in 4 years time every statement from a government minister will still start with "the situation we inherited from the last government" then go on to pontificate about the necessary measures.
all this with the deficit continuing to rise.
I will join you in that bet Howard.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
The facts of life are what they are.
No matter what bull anyone comes out with the situation can only be dealt with by cutting spending.
Brian Dixon- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
barry,you say it can be done by cutting spending,fair enough but if every public sevant has to take a pay cut,pay extra premimums on there pensions for less pension and on top of that having to work longer.that is taking the micky isnt it..in a another thread you asked what we would do if the vat rises where cut back to 17.5%,well here is my answer.mp's wages cut by25% allso to pay extra for there reduced pensions,banks to be taxed at 8% on there profits,cut overseas aid to zero [0].and that will do for starters.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
i fail to understand current economic policies, the cuts have not yet started to kick in yet, increased motoring costs, rail prices, v.a.t. rise and ever increasing energy costs are hurting the public.
this means they spend less as evidenced by the opening post on this thread.
things can only get steadily worse once the dumped public sector workers sign on the dole, yet the fat cats get steadily fatter as evidenced by the thread on redundancies at k.c.c. show.
i cannot remember hearing from dave, george or nick how the economy will get kick started.
Guest 645- Registered: 12 Mar 2008
- Posts: 4,463
I would like to see any politician move into an empty council house with his/her family for one month. The head of the household would receive nothing but benefits which would be supplemented by the wifes income from a part time job. This is a common scenario.
Out of that income they would have to meet the average monthly costs of rent ,gas,electric.phone,tv licence and food. Plus purchase at least 2 childrens items of clothing (shoes,shirt,dress or trousers) and face one unexpected bill. Breakdown of cooker,washing machine or fridge etc. Anyway you get the jist.
They would then be able to experience how hard it is for families to cope both financially and emotionally in the current climate.
I am sick and tired of being patronised by condenscending wealthy MP's who blurt out at every photo and press opportunity that ''We are all in it together'' and then disappear for a luxury 5* weekend break in the sun costing £5k with their partner,someone else's partner or the young office boy.
Do they think we are mugs? cos they sure as hell treat us like it.
Marek
I think therefore I am (not a Tory supporter)
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
that probably sums up the mood of the general public at the moment, they listen to old etonians who think that the working people are believing the stuf they spout.
we seem to be going back to the us and them days.
Guest 663- Registered: 20 Mar 2008
- Posts: 1,136
I'm with you on this Marek and Howard we are not all in this together,the likes of Cameron do not have to struggle to make ends meet and their families do not go without,and I for one am totaly fed up with hearing it was all the last goverments fault, that is wearing a bit thin. This is said as a working person keeping her head above water just.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
None of the whinging and whining, the they should do this, do that, will solve the problems left as an economic legacy.
If you spend more than you earn then you have to cut your spending. Simple.
Any sympathy with the public sector over their pension changes is misplaced. Someone in the private sector would have to invest 40% of their income into pensions to have a chance of getting a pension as good as the public sector. Even with these changes proposed that figure will be over 30%.