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A few hours before the budget....should we be all doom and gloom?
Will answer my own question in a few hours time ...........
Seems to be a fairly fair budget, apart from the regressive VAT rise.
The public sector side of things is in back yard as I do work in local government. The talk I hear is of some staff cuts this year, definitely removing a tranche of temps and then next year there is likely to be more difficult decisions about jobs. Makes me feel very nervous about things.
Just as importantly should I buy the new TV and any white goods this year before the VAT rise in January.
Does anyone know if the bus/underground tickets prices are subject to VAT? If so the rise will be steeper than we are used to getting.
seems better than I expected. 20% rise in VAT I suppose is an easy one and cheap to administer - represents a 2.13% rise in cost so your flat screen TV will cost, say, 510.65 instead of £500, and in reality, I would expect manafufacturers to absorb the cost so that the same TV would still sell for £499. I'm a little disappointed that they didn't raise duty on cigarettes - seems a good opportunity to raise taxes and try to cut down on smoking.
hmmm...seems that VAT is not charged on bus/train tickets within UK
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