SunnySideUp

The countries Darling is about to give us all some juicy presents tomorrow!

VAT cut to 15%, Tax cuts, Stamp Duty abandoned, Vehicle Exise Duty frozen, Petrol Duty cut, higher child benefits, higher Tax Credits .... and something which will shock everyone!

The lower paid will benefit most, as they are the ones who spend everything they get .. the middle earners will get much less as they will simply save and that's not what we want.

So, fellow ScoobyNetters - get out there and SPEND, SPEND, SPEND!!!!

J4CKO

iTrader: (1)

Stimulate the economy, just before Christmas to bolster the economy, Christmas the festival of buying more stuff than anyone needs and going into debt for it.

Isn't unnecessary spending kind of what got us into this mess ?

I suppose for the government, it isn't as daft as it sounds, they may as well have 15% of a decent amount of spending rather than 17.5 % of less. I dont think it is a blanket rate cut anyway, I suspect it will be selective, I dont expect petrol will get cut seeing as its dropped to 90 odd p a litre anyway.

I think the problem is that people will get used to it and when it reverts they wont be able to cope again.

So, I suggest caution, spend as you would have anyway and put a bit away to cope with the transition back to business as usual, they were fully into squeezing us for every penny before the recession hit, borrowing hard and now borrowing harder, this is just deferring the inevitable.

If you fall for this and go out and buy a new 20 odd grand, high CO2 emitting car on credit that you can only just afford, because the tax isn't going up, loans rates are low and petrol is "cheap" at the moment you need to think further ahead.

PaulC72

I agree Jacko, as I said in the other thread of the same nature, be wise and be prepared for the reverse of the cut.

Torquemada

SunnySideUp

On the contrary it was BORROWING beyond our means which got us into this mess. Spending is good for the economy, it gets the money flowing around the system.

Everything is 'stuck' at the moment - it just needs 'unsticking'

J4CKO

iTrader: (1)

Yes, point taken, if people buy stuff with spare earnings thats fine but they don't always, there is a lot of credit and not paying for basics to circumvent the saving for things process.

I suspect a lot will buy on credit anyway because they cant resist a bargain and don't want to miss out, we have got so used to getting what we want NOW so it will be interesting to see how this pans out.

SunnySideUp

I'm from a time when credit was not available to all and sundry. You had to beg your Bank Manager for a loan!

A Car Loan was only available if you could put 25% deposit down.

People had what they had if they could afford it.

Today (or yesterday) anyone could buy anything whenever they wanted it - and lots did. Personally, I cannot bring myself to borrow for anything other than a House and Car and even those are carefully costed.

falkster

Good point but the point of unnecessary spending is usually directed at the people that cant afford it. I have a friend that has 6k on credit cards and pays a little over the minimum each month. My friend has had the same balance for a few years and was oblivious to the suggestion that they transfer the balance to an 18 month interest free card with a small charge!!

Some people!!

SunnySideUp

Most people are not financially savvy - hence they get taken for all they have.

It means I get free banking and cashback credit cards mind you - so should I pray that these people still remain financial numpties!?

dpb

Maybe you need an early xmas present


some GLASSES


SAIL

SunnySideUp

I've got enough glasses thanks, wine glasses, beer glasses, tumblers, brandy glasses, sherry glasses, whisky glasses and champagne flutes.

Thanks all the same

Gordo

mmm, 2.5% is going to make sure a difference. It would have been much better if the New Labia idiots hadn't borrowed so much and spent needlessly in the first place. Anyone remember the empty promises to cut central government spending by reducing the number of civil servants? guess what - didn't happen and numbers (and therefore cost to you and I to fund their final salary pension schemes and 9 til 5 working week) continued to balloon.

Make me sick - desperate measures from a dishonest government.

Gordo

SunnySideUp

Gordo - we are where we are, Mistakes could have been made - but - do you suggest that we do what the Tories want us to do, ie. nothing?

apples24

iTrader: (1)

to be honest i feel that yes we are in **** but when you really think about it now fuel etc has reduced its all back to normal prices, the only think i hate was food shopping went up by a massive amount, and i havent seen it drop atal.

gas and electric needs to follow, we dont need the other massive cuts

Dan Gleebits

and a boat ??

SunnySideUp

I wonder what the 'Surprise' measure will be, as there is sure to be a shock in the announcement - it's needed to grab the headlines.

How about no VAT unitil 31st December 2008? That would create a mad rush on big TV's and New Cars .... everyone holding back on a big purchase will probably be tempted with that!?

Would create a little boom which is maybe what is needed to get the wallets and purses open again?

Lee247

So, Pete. The hole this lot have put us into, is now going to get covered up. When do we have to start digging our way out again

SunnySideUp

We are not alone in this hole - if you look around you will see America on your left, Russia on your right, Germany just behind you and there's Spain on your knee

As for digging out - Labour have just started to stitch together the ladder ..... you will see the Tories sleeping in the corner, a bit starry eyed at it all and not really having a clue

Henrik

iTrader: (5)

should hope so, they're the ones who dug a hole and pushed us into it.

Henrik

iTrader: (5)

That would be great, but what would happen in January and February to retail sales?

Extreme short term thinking FTW, as usual with this shower of crap government.

SunnySideUp

You cannot really think it is just the UK in the crap ............ do you?

Henrik

iTrader: (5)

Where did I say it was just the UK in the crap? Just because other countries are doing retarded things it doesn't mean that the UK has to follow suit (or indeed lead when it comes to personal debt, government debt, PFI schemes etc).

If you see 5-6 idiots driving into a tree at high speed, does that make you think it'd be a good idea for you to do the same?

dpb

Thats it, blame the crisis on anybody/thing else

- loll everybody into thinking we can afford the champagne lifestyle of the previous 15 years whilst borrowing heavily( and frittering needlessly ) into the next millenium to pay for it..

Old Labour is back with a vengence



( and so far down the road at the next election as to be out of site )

SunnySideUp

Point taken, you didn't.

The fact remains, however, that we have been dragged into the hole by the world economic woes .... we are not innocent of indulging in greed, and we are not alone.

What we should be proud of, I believe, is that we appear to be leading the world out of the mess. We are lucky enough to be led by someone who has had 10 years experience in world economics.

Vote him out come the election, by all means - but we really do need his knowledge now! The world seems to follow him - I just hope he is right!

Sosbanite

Are you Alisdair Cambell?

dpb

No - but hed lick his shoes

SunnySideUp

I wish I was as rich as him!!

He's clearly doing something right!!

SunnySideUp

Oooooooo, I'm all excited - only a few more hours to go

Coffin Dodger

By the sound of things if you're a high rate tax payer you'll probably be no better off as Labour are reverting to their tax the sh*t out of the rich to fund the poor policies The 40% rate will go up

Matteeboy

Errrmmm - except anyone running a private equity firm or hedge fund maybe?
Corporation tax - 5-10%, but often zilch.

The properly rich get away with HUGE amounts in the UK - that's why they piled over here in their droves.