I think, for me, the detailed calculation of gains and losses is not actually the issue that bothers me - even though the tax rises for me will reverse the VAT reduction. But then, with the current stock market, that is a relatively minor impact! There are bigger forces playing!!
However, overall this package of measures was just too complicated. It sends no clear message at all, other than of a man struggling with smoke and mirrors. However fair or unfair this may be, that is how it has seemed to me more than anything else.
And, sadly, I have read similar comments from some high profile economic commentators. So, overall, I doubt whether it will make much difference to whether people spend, borrow or lend.
In fact, I suspect that most of us in business are doing our absolute best to maximise our businesses at this time. Leave us alone Mr Darling. Most of the people doing that are smarter than you, and because of that the economy will pull through whether VAT is 17.5% or 15%. Just dont add cost, by changing the rate with only 4 days notice, or putting up NHI, or making the tax system too complicated.
Paul Norman 4N North Tyneside and Oxford
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