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When VAT fell to 15% just before the start of 2009, the Government thought that it would give the buying public the nudge to start spending a little more. In reality we found that it made hardly any difference. All it did was make paperwork more difficult when it rose back up to 17.5%. It didn’t create a surge in sales, or a spike in new appointments.
And when you turn it into numbers, and extra 2.5% less is only £25 every thousand. It’s not going to make much difference on a house full of windows and doors.
So what about the 20% VAT figure. Again I don’t think it will have too much of a negative impact on the buying public. Adding another £25 every thousand isn’t going to put Mr & Mrs Smith buying that big item, be it holidays, new windows or a new car. What I do think will happen is it will bring the Yorkshire out of everyone. No one likes parting with any more money than they have to. There could be a bit of a rush before the end of the year to replace people’s windows and doors before the VAT rate goes up. It’s only another £25, but when money is tight and everyone is being as economical with their money as they can, it’s an extra bit of cash they won’t want to give away.
>Hello, I don't see why 2.5% would make any difference really. You can get a great deal if you shop around and I am sure those deals will still be around in January. Anglian Windows has 35% off at the moment, and if you agree to become a showhome, there is and even better deal according to their website. And I am told they run the governments scrappage scheme for windows too. You just need to shop around a bit and there are always great deals. Its a bit like when I bought my sofa from DFS – I got… Read more »
>No, 2.5% shouldn't make much of a difference.
I'm always dubious of discounts and sales. 99% of the time the money is added on and taken back off again. Even with their discounts Anglian and Everest are always more than we are! And the Government scrappage scheme is a massive con! There is no such thing. They've just hijacked the term and dressed it up as another discount initiative. There is no true saving, just clever media PR and spin.
Same with other industries too.
Thanks for the comment!
DGB