In May, the coalition Government will be two years old. And in those two years they have implemented a deficit reduction plan that has stifled the spending power of the people in this country. It’s making people poorer, it’s frozen wages, it’s reduced profit margins. You can blame Labour for spending too much in previous Governments, or this coalition. Either way, blaming someone isn’t going to help. What is going to help is a cut in the amount we pay in VAT.
One of the key factors in getting an economy moving again is to get the public spending, but how do you do that when cash is short? One way is for VAT to be reduced. By how much then?
I’d reduce overall VAT to 15%, down from the current 20%. As Quentin Wilson from old BBC Top Gear and FairFuelUK has explained in a smaller version of the reduction process, by cutting tax, it can stimulate more spending which would more than compensate for the reduction in the first place. Well there’s no reason why this same principle won’t work with a general VAT cut. But it has to be 15% rather than 17.5%. A 2.5% reduction won’t have a big enough effect required.
A reduction in VAT will also mean a reduction in the cost of fuel, something which every single person who drives is practically begging for! Lower fuel costs will also mean more money in the pocket of potential spenders.
A VAT reduction for our industry is also desperately required. The biggest gripe with most people is that while all other home improvements set to be in the Green Deal benefit from a lower VAT rate, energy efficient windows still have to put up with the 20% VAT rate. Clearly unfair and unbalanced. What still amazes me is that despite all the campaigning for the Government to be recognized in the Green Deal, it is still seen as a side line industry, despite it being bigger than the music industry in this country!
So, what I’m asking is simple. Please leave your name and who you work for at the bottom of this post using the comments facility to show your support for a VAT reduction for energy efficient windows and an overall VAT reduction across the board across the UK! Once I think I have a significant amount of names down, I’m hoping to send the post and all of your names to the Government along with an email urging action to be taken to help boost our industry. I’ll need your help with this one. If you could promote this to help garner as many names as possible. And if some of you big boys out there could help contribute by adding your details to this cause that would be greatly appreciated!
I’m just one guy trying to do his bit for his industry. I hope you’ll all support me in my cause!
Many thanks!
Wayne Shaw (The Window Company)
Yes please.It would lower prices and up spending.
Nige- Nigel Grant Upvc
Lee johnson (Stevly windows)
all enery saving should be at 5%vat. or 0 rated .the government are all talk when it comes to green issues
I believe that all energy efficient products that are eligible under the Green Deal should have the same VAT rate applied i.e. 5%.
I also support your theory that an overall drop in VAT for all goods from 20% to 15% would help to kick-start our economy and support jobs growth in the UK.
The last 2.5% VAT drop didn’t work and wasn’t sustainable. The government then ended up having to increase VAT by double that amount to make up for it. I think it should be left as it is and continue the country’s cost cutting measures to eventually help bring us out of recession.
The country is in recession largely due to the state of mind of consumers caused directly by the media. Its mainly about consumer confidence rather than the cost of living.
I might get some flak for this comment :)
It’s all well and good saying that this or that should be cut but at the end of the day it has to be paid for or do you suggest we get further and further into debt ? As David has already said the last time VAT was reduced it was a waste of time, most companies didnt even pass it on to the consumer and instead used it to increase there own profits. Also the majority of people at the moment are paying down debt and or saving money due to the current worrys in the job market etc… Read more »
The government need to stop spending so much money not keep raising taxes. With all the money the government collect in Paye tax, national insurance, pension contributions, Vat, business rates, corporation tax, fuel tax, road tax, council tax, duty tax (i could go on and on) and they are still spending way above this. The government need to be making spending cuts not keep on raising taxes. We are taxed enough as it is!! If more people had more money to spend by a reduction in taxes they would’nt be worried about losing their jobs because the businesses/companies they work… Read more »
It will helps small business get back on thare feet
James Williams (DW Price Security)