Much guff is being talked at the moment about how we should get the economy going again, not least of all the hot air being generated at Liverpool by the Labour party conference.
I wrote the other day about Labour’s unfunded VAT cut proposals, but I think that there just might be another way of approaching this. The need is to put money back in peoples’ pockets so they have more to spend. This needs to be done across the board and I think I have a cunning plan…
Let’s zero rate the VAT on gas and electricity.
Now I know you’re going to say that this contrvenes EU rules and that we’re not allowed to reclassify these things once they’ve been defined, but I think we could perhaps take a leaf out of France’s book on this one. Let’s just take no notice and do it anyway!
There’s been a lot of bitching about the increased costs of utility bills so ths would be nice bit of a double whammy for Joe Public and let’s not forget that it would boost business as well. It’s not just private individuals that use power.
And to a large extent it’s self funding and increased profits mean increased corporation tax – and that’s at a considerably higher percentage that VAT.
Problem solved. Simples..