Britannia North Manchester MD Chris Smallwood has backed labours call for a VAT cut. In a statement made to the industry, Chris stated that the cuts from the current government were too hard and too fast. The governments policies are clearly not working, industry is anxious and uncertain of the future right across the board and confidence is waining in the current regimes policies. We have all been misled that the deficit must be paid off in four years, this is a nonsense, the debt pay off could easily be spread over 7 years, but the government seem obsessed with being able to kill off the debt prior to the next general election. If they continue with the current policies, people are going to continue losing their jobs and the tax take is going to reduce exacerbating the debt situation.
I think that Ed Balls (shadow chancellor)suggestion to reduce VAT is not a total solution but may help to stimulate the economy. I have been consistent since the VAT rise was announced that it was bad for the economy and so it is proving