Sarkozy and the cut in British VAT

February 7, 2009

When the French President, Nicolas Sarkozy said said that he wouldn’t make the same ‘mistake’ as Britain with regard to the VAT cut, the good old British press jumped on the statement as a slur against Blighty. But in reality the VAT cut was next to meaningless for the average British citizen.

The drop in VAT from 17.5 per cent to 15 per cent was said to equate to giving 12.5 billion pounds back to the people. This would equate to £312 for each of Britain’s 40 milion adults.  Sounds generous, but as a tax cut you’d have to spend nearly £14,500 on pre-adjustment priced goods  in order to get your £312 share. Which means that it was the poor who got well and truly screwed over once again.


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