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  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.

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