Spudda will be angry

Labour will aim to help tens of millions of people who are struggling on lower incomes by cutting the rate of VAT if it wins the general election, the shadow chancellor John McDonnell has told the Observer.

The new pledge to use the proceeds of future growth to reduce VAT from its current 20% level came as Theresa May and her senior ministers appeared to be at loggerheads over the Conservatives’ own tax policies, adding to an impression that the Tories are suffering a bout of late campaign jitters before polling day on Thursday.

But, but, a larger economy always needs MOAR TAX!

As we get richer it is only government which can provide the things we desire!

15 comments on “Spudda will be angry

  1. That may be a good thing to do but the rest of their insane policies mean there will be no future growth, quite the opposite.

  2. I can see the logic in Labour moving some more goods consumed by the poor into the 0% rate; but lowering the overall rate would give more cash to the rich, not to the poor or middle.

  3. Spud has tweeted “I approve. And it would deliver growth”. Really chasing that seat in the Lords.

  4. ” lowering the overall rate would give more cash to the rich, not to the poor or middle.”

    Not sure about that.My experience of the rich is, compared with the middle, they spend a considerably smaller portion of their money on purchases or services & more on employees wages. For the former they’re not playing catch-up on bling, having already got it & for the latter, buying labour hours by the day or month rather than by the hour.

  5. Nice to see the grauniad finally supporting Brexit.

    (We weren’t able to lower the rate of VAT while in the EU, except by begging permission for a temporary and very limited reduction)

  6. They should make VAT on food negative. That would help the poorest deal with their obesity and fitness problems as the food cost of exercise would come down. I’m sure this would work – I was driving a fare from Westminster to Hackney and it was mentioned by someone in the back who clearly knows her numbers and her incentives inside out..

  7. BiS,
    I haven’t thought this through fully, but are you saying that I could save 20% on my loft conversion by hiring the builders as employees rather than paying them for a service?

  8. Well, no, AndrewM. The rich don’t particularly go in for loft conversions. The attic rooms being where the maids are lurking.
    Which is rather my point. The middle use gardening & pool services. The rich have gardeners who, if they’re personally fully occupied with mowing & hoeing leave the pool to the pool boy.

  9. But on your particular point, at a certain level it can be cheaper to employ a builder directly than the equivalent service from a VAT charging company. Depends on the labour element ratio in the project. Either way you’re paying the guy’s tax &NI/ENI. Lot easier if you’re just adding someone to the payroll, of course.

  10. Has the Graun officially endorsed Corbyn yet, or does that come later? It’ll be funny if and when they do – it’ll officially mark their end as a serious newspaper.

    They might cop out and endorse the Lib Dems, I suppose.

  11. I got a leaflet from the local ZaNu MP.

    Corbyn isn’t even mentioned. A Labour GE leaflet that doesn’t mention the Party leader .

    That says–or rather doesn’t–it all.

  12. ‘Labour will aim to help tens of millions of people who are struggling on lower incomes’

    What’s this STRUGGLING shit?

  13. I may be wrong but I thought that VAT was one of those EU ratchets where you can put it up but not bring it down. Or are labour looking more long term?

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