Apple 'Black Friday' Discounts Hitting UK, Too?

@Luan - I agree that, if retailers pass on the VAT cut, it will be a good thing for shoppers and will hopefully stimulate some improvement in the economy, but it is nowhere near equivalent to 1.5% (let alone a 2.5%) pay increase. First of all, you have mortgage / rent payments (a very large proportion of most people's net pay), which are not subject to VAT and therefore won't benefit. Then you have food, children's clothes, books, electricity and gas, water, etc., which are all either 0% or 5% rated and therefore won't benefit from the rate cut, so that's another good chunk of your money. Next there's alcohol, tobacco and petrol/deisel, which will benefit from the VAT cut but will still go *UP* in price because of increased duty, so in total the actual proportion of a person's salary that will end up being spent on things that COULD be cheaper is actually going to be relatively small. Then you have to factor in that by no means all suppliers of those goods and services that could be cheaper will actually pass on the cut to consumers - many will pocket the difference themselves.

I'd guesstimate that your 1.5% is actually closer to 0.1%. Even *IF* it is say 0.3%, then for an average household income of £30k you're looking at less than £100 per year of benefit. Not much given the extent to which recent price increases for many things, such as food, domestic and motor fuel, holidays (given the pound has dropped like a stone in the last few months) have massively outstripped average salary increases.

And this is going to cost the country an absolute fortune. We'll be paying back the additional borrowing needed to fund this VAT cut through additional taxes for many, many years to come. The new 45% tax rate for higher earners and the increase in NICs is going to push wealth generating business offshore and discourage new business from locating in the UK.

If the VAT cut is intended to increase consumer spending, I think it is hugely misjudged. If, on the other hand, it is intended to give struggling businesses a bit of a break by allowing them to maintain their prices at the same level while increasing margins, then it may just pay off and keep some of them afloat.

Hahaaa pathetic anglo-saxons. I laugh at your puny VAT efforts. Come to the land of the Vikings and enjoy a wonderful 25% VAT (no reductions predicted) on ALL items! Yes, enjoy 25% state contributions on all your clothing, nappies and fruit and vege.

45% top tax rate, HAH!! 60% on the last kroner over here if you have a decent job and if that isn't good enough for you then you can enjoy the 180% tax on the purchase of a new car. Oh the warm fuzzy feeling of sharing ones wealth.

(p.s. if anyone could send me some of those reduced price chocolate biscuits I would be much abliged )

Lol @ haim

I guess that's why Scandinavian countries are ranked among the best places to live and the most developed in the world with excellent state healthcare and education. It would take more than 25% VAT over here to fix the funding black hole that is the NHS.