Wednesday, 14 January 2009

Hard pressed families...


Lord Mandelson was interviewed on Radio 4's Today this morning. When challenged about the success of the recent 2% VAT cut he wheeled out the "Hard pressed families" justification oft favoured in recent times by Labour.

The VAT cut in his estimation amounts to £270 per year (per household, per taxpayer - WHAT?), that in itself is questionable. He then went on to drone about how it "will make a real difference to the spending power of consumers on top of cheaper mortgages, cheaper commodities and therefore food". At this point I started shouting at the radio, and then remembered as I calmed down that I have a blog for just this purpose...

Do we pay VAT on food or mortgages and do businesses pay VAT? No, and NO they claim it back; albeit the demarcation of VAT is now less distinct than the original concept of a tax on non-essentials/luxuries - it does not apply to the basics (yet).

Mandelson: What did your house cost, and how did you finance that? And really, what do you know about 'hard pressed families'?

Absolutely nothing, you patronising fuckwit...

Hat tip Old Holborn

2 comments:

  1. To be fair to Mandelson (difficult I know) I think he was maybe talking about the food and mortgage reductions on top of the VAT cut rather than linking them.

    ReplyDelete
  2. Yup I think you're right, but to the majority of folks listening he was simply connecting them. That was the context, and wrong to do so...

    ReplyDelete