fiestaturbo.com

[Ollie]

Given the amount of effort involved in changing ALL their price tags in EVERY shop, can anyone actually see retailers passing the decrease on or just working out how much they need to put their prices up by?

What does everyone else think?


On a different note, I had to laugh at some woman on TV yesterday complaining that she couldn't buy healthy food for her kids, the reporter then asked "Would a reduction in VAT help you there?". "Absolutely, if the healthy food was cheaper I'd be able to afford it.".

Er... newsflash morons, there's no VAT on most food anyway!

[JamieFRST]

Just watching the news now, as they say we will all end up paying for it in the next few years anyhow

[Ollie]

Yeah, I noticed they mentioned an impending increase in National Insurance to pay it all off.

I also notice that whilst they've reduced standard VAT from 17.5% to 15% but there's no mention of reducing the reduced rate 5% VAT as well. Ie. the one that's applied to fuel, electricity, etc.

[filtra]

I'm not surprised this has happened and its right that it has.

As a result of deflation comming into play people won't be able to afford to pay their creditors and so this is a small step to start take the burden of debt that the country has gotten itself into.

[Garry J]

But it is always the same story, your given it in one hand and its taken away in the other.

This time they give it back to you (if it gets passed on to us) in a reduction in VAT and in the next breath announce that they are to increase the duty on petrol and diesel.

Why bother giving it us in the first place

Garry

[Ruishy1]

the government cant decrease anything, if they do that they lose revenue, and right now they cannot afford that, they are simply offsetting costs, passing the savings on people they feel need it, and shafting the motorists again

[Ollie]

They've not said they're putting fuel duty up, I just observed they're carefully avoiding reducing it.

Although they have backed down a bit on the planned VED increase. The top increase of £90 has been reduced to £30.

[Ruishy1]

thought i read on yahoo news they were putting an increase on duty on tobbaco and petrol

[Ollie]

I've not seen that. On the news they were talking about future increases in NI and Income Tax for high earners.

I believe they're trying to reduce the price of fuel as in energy prices for homes. That's of far more interest to me than the cost of petrol if I'm honest.

[Ruishy1]

tbh neither really bothers me, as im a contractor i pay less tax and ni, so either way im not bothered

[JamieFRST]

They've not said they're putting fuel duty up, I just observed they're carefully avoiding reducing it.

Although they have backed down a bit on the planned VED increase. The top increase of £90 has been reduced to £30.

Just seen this while reading about car tax on autotrader


VAT lowered

The cost of VAT (value added tax) has been reduced from 17.5 per cent to 15 per cent.

What does this mean?

The cost of VAT on all new goods will be cut by 2.5 per cent on December 1. However, petrol prices will be raised to offset this VAT cut – which means fuel won’t cost less at the forecourt. The same goes for alcohol and tobacco.

Car buyers can expect a decrease in new car prices.

[Summer22]

The Body Shop online had dropped their VAT down to 15% I noticed this eve

[Ollie]

There was a guy on the TV this morning claiming that it'll take him so long to change all his prices that he probably won't get it done before it goes back up again. Although I suspect he was being a bit over dramatic.

They've not said they're putting fuel duty up, I just observed they're carefully avoiding reducing it.

Although they have backed down a bit on the planned VED increase. The top increase of £90 has been reduced to £30.

Just seen this while reading about car tax on autotrader


VAT lowered

The cost of VAT (value added tax) has been reduced from 17.5 per cent to 15 per cent.

What does this mean?

The cost of VAT on all new goods will be cut by 2.5 per cent on December 1. However, petrol prices will be raised to offset this VAT cut – which means fuel won’t cost less at the forecourt. The same goes for alcohol and tobacco.

Car buyers can expect a decrease in new car prices.

They've FINALLY mentioned that on the news this morning.

Ford haven't dropped the prices of their new cars yet...

[JamieFRST]

Its not meant to take effect untill the 1st. Expect online stores will do it quicker

[Tweek]

Fuel duty goes up 2p a litre and the joke is it's permanent, doesn't come back off when the VAT goes back.

[Ollie]

Its not meant to take effect untill the 1st. Expect online stores will do it quicker

Yep, Overclockers were straight in there with the decrease and a mailing to tell everyone. Not ones to miss a marketing trick!

Fuel duty goes up 2p a litre and the joke is it's permanent, doesn't come back off when the VAT goes back.

That's because it's an increase planned as part of the budget, not as a part of the plan to combat recession.

[JamieFRST]

Its not meant to take effect untill the 1st. Expect online stores will do it quicker

Yep, Overclockers were straight in there with the decrease and a mailing to tell everyone. Not ones to miss a marketing trick!



Will take a look see what the prices are looking like, was thinking about getting a new cpu.

[Ollie]

Next on the bandwaggon - SVP and MyMemory. Got "reducded VAT, NOW!" style mailings from both of them this morning.

[jayrs]

dropping the vat is a bad thing imo

why do i think this, because its true, ive not read all the replies here so maye repet some but still.
when this fcuking goverment does some thing to "help" us, it means that they are doing something to "con us"
they have droped the rate of vat, wow. a whole 2.5%, buying something big outright liek a car or something you can see the savings, but not everyone does this, its s con to get people spending again, and more so, taking on credit, loans, credit cards etc, its a stealth tatic, like when you go in a shop and you see a offer, buy 2 for £1, you think its a bargin and buy 2 when you only want one, normal price of 1, 59p, price of 2, £1.18, you have saved 18p and the shop has sold twice as many, so the loss of 18p is off set against the profit made on the second one sold, you think you got a deal, the shops made more money, this is no different

drop the vat to get everyone spending and taking on credit, interest rates will go back up, prob mid jan as everyone would of borrowed over christmas, vat WILL go back up, and i reckon within the next 3 months, at best within 6 months.
and how are they getting the money back they have lost in vat? well yes ive heard petrol is going back up, there say its the 2p tax they have been putting off for ages but cant anymore, yeah right, then it will go up again, and anyone earning £150k or more a year is now going to be taxed 45p in every pound they earn!
dont get me wrong i got othing against people earning lots of money even if they do tend to be stuck up c*nts, but 45p in every quid they earn is just sheer robbery!
its a robin hood tatic at the end of the day, take wfrom the rich and give to the poor, but it aint gunna last, when they have "done us a favour" and fcuked over the rest, they will then turn round and fcuk us all over, vat back up, petrol back up, interest rates back up etc etc

like everything chaps, if it seems to good to be true it normaly is!

and on another note, i reckon what there doing is part of a bigger plan, the value of the pound is dropping due to the credit crunch and all that, but i reckon therte doing this to make the pound so weak the euro is worth more, then there turn around and give it all the b0llocks we would be better off and to get out of debt etc the only way to do this is to join the EU 100%.
this goverment have never done anything to help us short or long term, so dont get comfortable.

on a personl note, , sorry for any grammer or spelling mistakes, this is my view, my opionion, im not trying to convice anyone there wrong or im right or im better etc, i have not quoted anything nor do i read the daily mail or any other news paper, thank you.

[Ollie]

like when you go in a show and you see a offer, buy 2 for £1, you think its a bargin and buy 2 when you only want one, normal price of 1, 59p, price of 2, £1.18, you have saved 18p and the shop has sold twice as many, so the loss of 18p is off set against the profit made on the second one sold, you think you got a deal, the shops made more money, this is no different

I'm not sure I entirely agree with "you think you got a deal". It really depends what it is you're buying, but if you do it sensibly then you do get a good deal and whether or not the shop still make their money becomes ultimately irrelevant.

For instance, I buy a lot of non-perishable stuff (washing power, softrinse, shampoo, showergel, toilet paper, etc) on special offers. Either buy 2 save £1, buy 1 get 1 free, etc, offers where getting two for the price of one can save you £1 to £3 a time. Last time I did my shopping I saved £20 using those kind of deals. So because they're all things I can keep forever, I now have a cupboard full of shampoo and shower gel and it'll be months before I need to buy any more, by which time there'll probably be another offer on them.

If however you do it on food that's perisable then it becomes less sensible. For instance, there's no point buying 2 and saving a pound if one of them is going to go mouldy before you get the chance to eat it!

Likewise if it's something you wouldn't normally have bought then you're not saving anything. Vouchers are a good example of this, people get a voucher for something they would otherwise never have bought, so they go and buy one.



Incidentally, they said last night that 15% is as low as they're allowed to drop VAT. I'm not sure how much truth there is in that though.

[jayrs]

yeah i agree with you, im not (sp) controdicting my self, it was simply put up as a example of how you can be mis-lead into buying or beliving things you wouldnt normaly, if the stuff last forever or goes off in 3 days is not the point, if you go in for 1 and come out with 3, yes you save money on the price of 3, but you have spent more money as you only needed one, it dont matter if you dont have to buy any more of whatever it is for 3 months, they got more money from you there and then, but then again these deals are all done to get you into there shop to get the deals, and once in they expect people to just continue to do there shopping which alot do, unless you a right bargin hunter and go round all the shops getting the deals to save loads, which ive done, but that aside, thats not the point i was making.

it was as ive said a example of how some can be lead to belive they get a good deal, when theres always a different motive for them, price matching, yeah sure, but as i said once there, you could be tempted to spend more, thats why everything is in nice bright colour packing with lovly pictures, and the smell of bread or donuts etc its all done to get more from you, what the goverment is doing is no different, there reeling you in with the offers, but there make up the short fall else where, thats all i was saying

[Ollie]

I know what you're saying, the reason I'm seeing it from a different viewpoint is that I very rarely do any shopping in actual shops don't get pulled into the whole colours, smells, strategic shelf rearranging tactics.

Where I do my grocery shopping online I only ever find offers on stuff I was intending to buy anyway. I agree that when I used to go to Tesco I'd be wondering around and see stuff and think "oooh, that looks nice". Whereas now I just buy what I set out to buy and get as much of it through special offers as I can.

I also set myself a price limit for what I'll spend each week, if I go over then I start going through my basket to sift out stuff I don't really need or I could put off until my next delivery. So if I spend an extra £20 buying toiletries at reduced prices, I'll subsequently dump other stuff I don't need that isn't on offer. That's another benfit of online shopping, it's not easy to do in store!!

That's why I'm saying the special offers don't make them any extra money from me, because in the long run I'm still buying the same amount of stuff and still spending the same amount. I'm not actually buying more than I need, I'm just buying them at different times. Whereas normally I'd have bought say 1 bottle of shower gel at full price every 2 weeks, I buy 2 at half price one week and then it's another 4 weeks before I buy any more.

You can work all special offers to benefit you if you do it carefully.

Anyway... we're drifting off topic here.

[jayrs]

i would say i9t was only meant as a example or getting sucked into things

[Luke1990]

cant bob geldof get our debt written off like he did for Africa?

[jayrs]

[Ollie]

cant bob geldof get our debt written off like he did for Africa?

Surely Britain just adopts the "What money? You didn't lend us anything..." approach?


Woollies and MFI going under is pretty bad. That's a hell of a lot of jobs.

[jayrs]

its the begining of the end...

[Project_XR2i_Trackcar]

They shouldnt have lowered the VAT. 2.5% is feck all really unless you are buying big, which no one is. Not everyone will benefit from this move. I certainly won't as I'm Armed Forces serving in Germany so i get pretty much everything VAT free anyway but, i will still have to suffer later though when they tax us more (hints of 18.5% VAT) 'later' to cover 'now'

They should have lowered income tax or council tax instead in my opnion, in which case every tax paying earner will benefit. I certainly wouldnt increase my expenditure for a 2.5% decrease on VAT, its just too minimal to notice.

I cant see the shops adjusting their prices on the shop front, i reakon they may reduce it at the till but to change all of their tags would be an admin nightmare and completely pointless.

Amazon are also only charging 15% at present too.

[Ollie]

They should have lowered income tax or council tax instead in my opnion, in which case every tax paying earner will benefit. I certainly wouldnt increase my expenditure for a 2.5% decrease on VAT, its just too minimal to notice.

It's a psychological thing.

The problem with lowering income-tax is that just because people get more money doesn't mean they'll spend it. Mostly people will still look at the prices and go "that's a bit expensive" even if they have more.

Whereas by lowering VAT theoretically shops will lower their prices. People then see the lower price and are more encouraged to buy something because it's cheaper than normal.

It's the same reason why a shop will sell more of something if it's priced at £19.99 than if it's £20.00.

To keep the economy moving they need people to spend their money, not save it.

[Dave_B]

dropping the vat 2.5% is really only a discount of 2.13% its been a nightmare at work sorting out all the pricing!

and actually nobody cares! saving 2.13p in every £1. those that are smart enough to understand the vat cut know its not woth worrying about and those that dont, are too stupid to realise there not saving anything really!

all thats going to happen is that in 12-13months time the vat will increase up to the wrong side of 20% i fear to compensate for now.

dave

[Luke1990]

all thats going to happen is that in 12-13months time the vat will increase up to the wrong side of 20% i fear to compensate for now.

dave

I cant see them putting up taxes in the depths of a recession tbh. The government forecast is based on best case scenario for some reason and is at odds with the global studies.....excellent..

[Dave_B]

all thats going to happen is that in 12-13months time the vat will increase up to the wrong side of 20% i fear to compensate for now.

dave

I cant see them putting up taxes in the depths of a recession tbh. The government forecast is based on best case scenario for some reason and is at odds with the global studies.....excellent..

we will be out of the recession by then imo. as previously said, the government never does something for nothing.

dave

[Luke1990]

house prices are forecast not to start picking up until mid 2010.

If i was at work I could link you to our economic review that we use as a basis to cost major construction projects.

tbh i think the reason for the positive outlook for the govt. is two fold, firstly so they can increase borrowing more promising they can pay it back "soon" this means they dont have to cut public spending in the years leading to the next election, but also to try and raise consumer confidence.

It was only a couple of weeks ago that unemployment was predicted to only rise to 2 million.....which is seeming optimistic now.

[andymac]

VAT reduction is naught but a ploy to try and get consumers spending again and the money circulating imo - although it's costing businesses hundreds of pounds in hours getting staff to reprice everything up - I've had to spend hours sorting out billing systems today that some complete fucktard hardcoded VAT rates into.

To say I'm unimpressed is an understatement.