tag:blogger.com,1999:blog-38548109.post882560525238507931..comments2024-02-13T10:20:04.888+00:00Comments on David Hepworth's blog: Run for your lives! The politicians are back from holiday!David Hepworthhttp://www.blogger.com/profile/05973053694541321308noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-38548109.post-25836546017266350952009-01-16T09:14:00.000+00:002009-01-16T09:14:00.000+00:00They do seem incapable of any radical thinking. Wh...They do seem incapable of any radical thinking. What they should have done was knock up VAT for online retailers with a turnover of more than X to 40% and dropped VAT completely on the high street, but for a limited time only. <BR/><BR/>Dropping VAT to 0 for 1 month would probably cost as much as dropping it by 2.5% for 12 months but might just have saved the high street.Simonhttps://www.blogger.com/profile/01405736492067258364noreply@blogger.comtag:blogger.com,1999:blog-38548109.post-25214353111749994522009-01-15T20:37:00.000+00:002009-01-15T20:37:00.000+00:00I work in the IT department of a large retailer, a...I work in the IT department of a large retailer, and I can honestly tell you that this was the equivalent of the year 2000 work with 5 days notice. It was weeks and weeks of effort for what was (in our shops anyway) a few pence difference. We then had the thousands of hours of labour in the stores after christmas when the shelf-edge labels had to change. I went out to store for 3 days to help them.<BR/><BR/>The worst part of this is that it will be so much worse in 12 months time when (as he has said) the chancellor will revert the VAT rate. When prices go down, you are not legally obliged to advertise the lower price on the shelf edge as long as the price the customer pays at the till is lower. Trading standards get interested if you are charging MORE at the till than is advertised on the shelf. This means that next Christmas, we will be forced to change ALL the price labels in the store BEFORE we can action the prices at the till.<BR/><BR/>It's a bloody nightmare and if anyone thinks this is helping anyone, then they should see the mildly bemused look on the customer's face when they see they've saved 4p on their basket of shopping.<BR/><BR/>Grr.<BR/><BR/>I think it's fair to say that Darling has lost the votes of most retailers.<BR/><BR/>STswisslethttps://www.blogger.com/profile/16708248700851998044noreply@blogger.comtag:blogger.com,1999:blog-38548109.post-1602152147300895572009-01-15T10:08:00.000+00:002009-01-15T10:08:00.000+00:00In fact companies which decide - for whatever reas...In fact companies which decide - for whatever reason- not to pass it on the VAT cut will get a fairly significant boost.<BR/><BR/>A company with a net margin of 10% will see net profit rise by 25%. Leading, you could assume, to more jobs, more investment, higher wages, better returns for shareholders etc.<BR/><BR/>If it is passed on, then there is a government-funded 2% drop in prices. I have never studied economics at a high level, but I wonder why many commentators and politicians believe that elasticity of demand does not apply for small reductions in prices.Unknownhttps://www.blogger.com/profile/01826512321840299199noreply@blogger.comtag:blogger.com,1999:blog-38548109.post-31808772174094688382009-01-15T09:10:00.000+00:002009-01-15T09:10:00.000+00:00Taking the light bulb analogy to give you my favou...Taking the light bulb analogy to give you my favourite - how many classical economists does it take to change a light bulb? None as the invisible hand of the market will do it for them.<BR/><BR/>I do think the government needs to intervene in some Keynsian way. I can see some sense in the VAT change - if it is not actioned (eg in restaurants largely) then the profits will be a bit higher (or losses a bit lower) thereby assisting those businesses and increasing corporation tax returns by the back door. Any other measure would have required legislation so would have been slower to implement with as many strange consequences.<BR/><BR/>Iand Andy is right - I bet there would have been an outcry if the VAT rate had gone up and not a view that it was tinkering at the edges.Blackacrehttps://www.blogger.com/profile/15808024417861534968noreply@blogger.comtag:blogger.com,1999:blog-38548109.post-9763303357157003202009-01-14T23:39:00.000+00:002009-01-14T23:39:00.000+00:00It was a long time ago now that VAT went up from 1...It was a long time ago now that VAT went up from 15% to 17.5%, possibly 1990/1991, but I was working in a shop then and I can assure you we were tasked with raising the prices on every item in the shop overnight. There was also a considerate controversy amongst the general public then, too - an outcry against the cost of their weekly shop going up.<BR/><BR/>I wonder what the reaction of the 2009 public and trade would have been to VAT rising from 17.5% to 20%.Andyhttps://www.blogger.com/profile/13938749257447927262noreply@blogger.comtag:blogger.com,1999:blog-38548109.post-27276467762935277542009-01-14T22:33:00.000+00:002009-01-14T22:33:00.000+00:00The government doesn't know what to do, but it kno...The government doesn't know what to do, but it knows it wants to do it. Latest wheeze, change a centuries old law on the day of a rate cut so it gets overlooked, allowing the covert printing of money. The combination of utter cluelessness and steely cynicism is, you have to admit, impressive. Better get that wheelbarrow out, you're going to need it....<BR/><BR/>http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/4214232/Reform-plan-raises-fears-of-Bank-secrecy.htmlPhil Thomashttps://www.blogger.com/profile/16777445282811927114noreply@blogger.comtag:blogger.com,1999:blog-38548109.post-22478669198822324222009-01-14T22:16:00.000+00:002009-01-14T22:16:00.000+00:00Well, I suppose it's a bit like the joke about the...Well, I suppose it's a bit like the joke about the number of psychiatrists you need to change a lightbulb: one, but the bulb's got to want to change.<BR/><BR/>It's what they're pinning they're hopes on. But as you say, he can't actually do anything much. He can only be. He's bringing hope to furniture stores so far.The Old Batsmanhttps://www.blogger.com/profile/14376172807195747856noreply@blogger.comtag:blogger.com,1999:blog-38548109.post-1753150722853403352009-01-14T20:40:00.000+00:002009-01-14T20:40:00.000+00:00David Dimbleby explains the fact that he's doing h...David Dimbleby explains the fact that he's doing his programme from Washington this week on "expectations being so high" ahead of Obama's inauguration. Which makes me wonder, what kind of credulous infants have any expectations of him beyond the outside chance of his getting re-elected in 2012? What do they honestly think he's going to *do*? Read them a story?David Hepworthhttps://www.blogger.com/profile/03541581777824775884noreply@blogger.comtag:blogger.com,1999:blog-38548109.post-64936721530170694982009-01-14T20:31:00.000+00:002009-01-14T20:31:00.000+00:00Is it fiddling, or an example of the old maxim abo...Is it fiddling, or an example of the old maxim about camels being racehorses built by committee?<BR/><BR/>Incidentally, there was a nice piece on the radio about Obama and change in the US, which in reality is in the same boat, but is surfing a feelgood factor. One furniture chain has developed an ad campaign called 'change begins at home'. <BR/><BR/>You've gotta think they'll get out of it before we do...The Old Batsmanhttps://www.blogger.com/profile/14376172807195747856noreply@blogger.com