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!