LEAVE the Conservative Party and save your country!

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  • rjsterry
    rjsterry Posts: 29,811

    pblakeney said:

    pblakeney said:

    A decent rule of thumb re stimulus is that it needs to amount to the size of the recession, roughly.

    So if there's a 9% drop in GDP, the state needs to spend that equivalent.

    As SC points out, it's not that linear however as if you don't have the virus under control you can easily end up not being able to deploy that stuff in the most effective way and you don't really solve the cause.

    Building stuff is such a dumb solution to this recession that you have to wonder whether fiscal expansion is just a figleaf for a man child who likes big infrastructure projects
    Gove is absolutely not immune to white elephants.

    https://www.huffingtonpost.co.uk/2011/11/25/michael-gove-puts-bible-every-school_n_1113099.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAB79927KwknflQX7vS435duBtz-zZRJkP9mxsFPCe89SMULJ022echd-7JwETjVEEW6h0z1qwPMMJuFJejnmcJRDWioYWkkHrdfmVsjQCeQ0aQrPmsch0pqFN4QzoX0D9rra97SqUjgaQ-mtePoQoXXD-6VhXrJP-9DZKDjD5v-2

    (all the books got pulped)

    Not sure I agree with your analysis tbh.

    Gigantic investment into the infrastructure high speed broadband for the whole of the UK, both 5g and piped into people's homes is absolutely not a waste of time.
    My point is that building stuff over the next ten years will not get us out of the current predicament. It gets back to your only tool is a hammer so every problem looks like a nail.

    We all know why the economy is tanking and it is not because VAT is too high. Imagine if you were holding off buying a new £5k bike because you were worried about family finances or the one you want is not in stock. Woohoo Boris is taking 2.5% off VAT so you are going to save £125 is that really going to tip you over the edge?

    Agree on the broadband (I would incentivise the market) but it does not make for a good photo opp so you are going to have to make do with a trainline.

    Your belief in the power of the state to drive the economy does not seem to allow for the fact that politicians tend to make bad, incompetent or self-serving decisions
    Yeah I tend to agree re-vat. I also tend to agree with the state making good or bad decisions. However, in a depression the private market is not doing what is required to improve the economy, which is spend, so the gov't has to step in.

    The gov't has certain natural advantages in a depression; primarily it can borrow and service the debt much more cheaply than the private sector, and in a period of depression, that is a material advantage.

    They are uniquely placed to help boost otherwise sinking economies, and so any spending is better than no spending - that is the priority. Where it is spent is of secondary importance. Important, but the priority is just spending.
    no matter the cause of the recession?
    Yeah. Of course solving the cause is of primary importance but that doesn’t solve a depression.

    If covid disappeared tomorrow we would still be in the throes of a global depression.
    what problem are you solving by committing to decades long building programs?
    Keeping people employed. People earning (hopefully) have greater disposable income. Spending disposable income keeps the economy going.
    The alternative is just bad news.
    how does building a railway line ten years from now keep people employed today, tomorrow and next year. In good years you will still be funnelling tens of billions into the trainline
    I wasn't being specific. Ideally you'd want the work to start ASAP but big projects don't kick off immediately.
    The alternative is unemployment as the private sector is hunkering down. Unemployment stifles spending and the economy goes downhill. There is no easy solution. I doubt we will even return to where we were 6 months ago. Businesses and lives have been changed irrevocably.
    the issue of speed is a real world problem and has to have an impact on whether you think a govt can spend an economy out of recession.

    Govt has increased spending over the last year to stop us falling into recession, do you think that is a good idea or as it would be a very minor recession just accept that it is an adjustment to the new post-Brexit normal?
    You realise we are already building a railway at the moment?
    1985 Mercian King of Mercia - work in progress (Hah! Who am I kidding?)
    Pinnacle Monzonite

    Part of the anti-growth coalition
  • rick_chasey
    rick_chasey Posts: 75,660



    surely this time around the spending will come back anyway especially as the govt has tried to preserve businesses and jobs. In the meantime why launch infrastructure projects that will run for decades?

    looks to me like the cuckoo is hiding his reasons for wanting massive hikes in govt spending

    Really not. I think the level of economic scarring has not been revealed yet but it looks horrendous. Properly horrendous.
  • pblakeney
    pblakeney Posts: 27,490

    pblakeney said:

    pblakeney said:

    A decent rule of thumb re stimulus is that it needs to amount to the size of the recession, roughly.

    So if there's a 9% drop in GDP, the state needs to spend that equivalent.

    As SC points out, it's not that linear however as if you don't have the virus under control you can easily end up not being able to deploy that stuff in the most effective way and you don't really solve the cause.

    Building stuff is such a dumb solution to this recession that you have to wonder whether fiscal expansion is just a figleaf for a man child who likes big infrastructure projects
    Gove is absolutely not immune to white elephants.

    https://www.huffingtonpost.co.uk/2011/11/25/michael-gove-puts-bible-every-school_n_1113099.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAB79927KwknflQX7vS435duBtz-zZRJkP9mxsFPCe89SMULJ022echd-7JwETjVEEW6h0z1qwPMMJuFJejnmcJRDWioYWkkHrdfmVsjQCeQ0aQrPmsch0pqFN4QzoX0D9rra97SqUjgaQ-mtePoQoXXD-6VhXrJP-9DZKDjD5v-2

    (all the books got pulped)

    Not sure I agree with your analysis tbh.

    Gigantic investment into the infrastructure high speed broadband for the whole of the UK, both 5g and piped into people's homes is absolutely not a waste of time.
    My point is that building stuff over the next ten years will not get us out of the current predicament. It gets back to your only tool is a hammer so every problem looks like a nail.

    We all know why the economy is tanking and it is not because VAT is too high. Imagine if you were holding off buying a new £5k bike because you were worried about family finances or the one you want is not in stock. Woohoo Boris is taking 2.5% off VAT so you are going to save £125 is that really going to tip you over the edge?

    Agree on the broadband (I would incentivise the market) but it does not make for a good photo opp so you are going to have to make do with a trainline.

    Your belief in the power of the state to drive the economy does not seem to allow for the fact that politicians tend to make bad, incompetent or self-serving decisions
    Yeah I tend to agree re-vat. I also tend to agree with the state making good or bad decisions. However, in a depression the private market is not doing what is required to improve the economy, which is spend, so the gov't has to step in.

    The gov't has certain natural advantages in a depression; primarily it can borrow and service the debt much more cheaply than the private sector, and in a period of depression, that is a material advantage.

    They are uniquely placed to help boost otherwise sinking economies, and so any spending is better than no spending - that is the priority. Where it is spent is of secondary importance. Important, but the priority is just spending.
    no matter the cause of the recession?
    Yeah. Of course solving the cause is of primary importance but that doesn’t solve a depression.

    If covid disappeared tomorrow we would still be in the throes of a global depression.
    what problem are you solving by committing to decades long building programs?
    Keeping people employed. People earning (hopefully) have greater disposable income. Spending disposable income keeps the economy going.
    The alternative is just bad news.
    how does building a railway line ten years from now keep people employed today, tomorrow and next year. In good years you will still be funnelling tens of billions into the trainline
    I wasn't being specific. Ideally you'd want the work to start ASAP but big projects don't kick off immediately.
    The alternative is unemployment as the private sector is hunkering down. Unemployment stifles spending and the economy goes downhill. There is no easy solution. I doubt we will even return to where we were 6 months ago. Businesses and lives have been changed irrevocably.
    the issue of speed is a real world problem and has to have an impact on whether you think a govt can spend an economy out of recession.

    Govt has increased spending over the last year to stop us falling into recession, do you think that is a good idea or as it would be a very minor recession just accept that it is an adjustment to the new post-Brexit normal?
    I accept that the economy is screwed and that something has to be done.
    Whatever the solution is it will not be cheap, it will not be pleasant And it will not be swift. I am expecting hard times for the next decade.
    We can but hope DT is right and I am wrong.
    The above may be fact, or fiction, I may be serious, I may be jesting.
    I am not sure. You have no chance.
    Veronese68 wrote:
    PB is the most sensible person on here.
  • rjsterry
    rjsterry Posts: 29,811
    This chart explains a lot about the government approach.

    1985 Mercian King of Mercia - work in progress (Hah! Who am I kidding?)
    Pinnacle Monzonite

    Part of the anti-growth coalition
  • john80
    john80 Posts: 2,965
    For those that say a VAT drop would not make a difference I would present plenty of dinghy sailors that would look to save anything up to 20% of the price of their next £10k dinghy. Everyday stuff would not be such a saving as it is hard to buy 4 years worth of pasta and store it and there is not much of a reward given its low value.
  • pblakeney
    pblakeney Posts: 27,490
    On the other hand, I'd hazard a guess that more is spent per annum in this country on pasta than on dinghies.
    The above may be fact, or fiction, I may be serious, I may be jesting.
    I am not sure. You have no chance.
    Veronese68 wrote:
    PB is the most sensible person on here.
  • john80 said:

    For those that say a VAT drop would not make a difference I would present plenty of dinghy sailors that would look to save anything up to 20% of the price of their next £10k dinghy. Everyday stuff would not be such a saving as it is hard to buy 4 years worth of pasta and store it and there is not much of a reward given its low value.

    The biggest problem I have with a straight VAT cut is that it will increase the profits of online retailers and not necessarily the high street, so I would want to see tax changes that are skewed towards the high street rather than online.
  • tailwindhome
    tailwindhome Posts: 19,459
    john80 said:

    For those that say a VAT drop would not make a difference I would present plenty of dinghy sailors that would look to save anything up to 20% of the price of their next £10k dinghy. Everyday stuff would not be such a saving as it is hard to buy 4 years worth of pasta and store it and there is not much of a reward given its low value.

    Dinghies being famously easy to store and stockpile.


    “New York has the haircuts, London has the trousers, but Belfast has the reason!
  • Stevo_666
    Stevo_666 Posts: 61,814



    surely this time around the spending will come back anyway especially as the govt has tried to preserve businesses and jobs. In the meantime why launch infrastructure projects that will run for decades?

    looks to me like the cuckoo is hiding his reasons for wanting massive hikes in govt spending

    Really not. I think the level of economic scarring has not been revealed yet but it looks horrendous. Properly horrendous.
    If it has not yet been revealed how can it look horrendous?
    "I spent most of my money on birds, booze and fast cars: the rest of it I just squandered." [George Best]
  • Stevo_666
    Stevo_666 Posts: 61,814

    john80 said:

    For those that say a VAT drop would not make a difference I would present plenty of dinghy sailors that would look to save anything up to 20% of the price of their next £10k dinghy. Everyday stuff would not be such a saving as it is hard to buy 4 years worth of pasta and store it and there is not much of a reward given its low value.

    The biggest problem I have with a straight VAT cut is that it will increase the profits of online retailers and not necessarily the high street, so I would want to see tax changes that are skewed towards the high street rather than online.
    I think a lot will depend on whether businesses pass on the VAT reduction to the end consumer, regardless of the sales channel. We can watch the German situation and see what happens there.
    "I spent most of my money on birds, booze and fast cars: the rest of it I just squandered." [George Best]
  • rick_chasey
    rick_chasey Posts: 75,660
    Stevo_666 said:



    surely this time around the spending will come back anyway especially as the govt has tried to preserve businesses and jobs. In the meantime why launch infrastructure projects that will run for decades?

    looks to me like the cuckoo is hiding his reasons for wanting massive hikes in govt spending

    Really not. I think the level of economic scarring has not been revealed yet but it looks horrendous. Properly horrendous.
    If it has not yet been revealed how can it look horrendous?
    So we currently have large swathes of the economy on life support - so we can't see yet which bits will die as soon as the taps are turned off and which won't.

    If you go industry by industry however, it's hard to see an industry that isn't going to see gigantic losses.

    There are entire industries that will take an absolute battering. That has knock-on effects.
  • Stevo_666
    Stevo_666 Posts: 61,814
    edited June 2020

    Stevo_666 said:



    surely this time around the spending will come back anyway especially as the govt has tried to preserve businesses and jobs. In the meantime why launch infrastructure projects that will run for decades?

    looks to me like the cuckoo is hiding his reasons for wanting massive hikes in govt spending

    Really not. I think the level of economic scarring has not been revealed yet but it looks horrendous. Properly horrendous.
    If it has not yet been revealed how can it look horrendous?
    So we currently have large swathes of the economy on life support - so we can't see yet which bits will die as soon as the taps are turned off and which won't.

    If you go industry by industry however, it's hard to see an industry that isn't going to see gigantic losses.

    There are entire industries that will take an absolute battering. That has knock-on effects.
    So what you're saying is that the effects haven't been revealed yet, but you are predicting fhat it will be horrendous.

    There are quite a few sectors that will not see 'gigantic' losses and a few that are doing pretty well - based on the reports that I have seen (the sort produced for institutional clients rather than for the mainstream media). I can dig out some more later if you want a more detailed and relatively unbiased view?
    "I spent most of my money on birds, booze and fast cars: the rest of it I just squandered." [George Best]
  • kingstongraham
    kingstongraham Posts: 28,227
    john80 said:

    For those that say a VAT drop would not make a difference I would present plenty of dinghy sailors that would look to save anything up to 20% of the price of their next £10k dinghy. Everyday stuff would not be such a saving as it is hard to buy 4 years worth of pasta and store it and there is not much of a reward given its low value.

    And VAT isn't charged on pasta.
  • rjsterry
    rjsterry Posts: 29,811
    Would love to know how pushing Mark Sedwill out and replacing him with a SPAD fits into the professed aims in Goves's speech.
    1985 Mercian King of Mercia - work in progress (Hah! Who am I kidding?)
    Pinnacle Monzonite

    Part of the anti-growth coalition
  • surrey_commuter
    surrey_commuter Posts: 18,867
    john80 said:

    For those that say a VAT drop would not make a difference I would present plenty of dinghy sailors that would look to save anything up to 20% of the price of their next £10k dinghy. Everyday stuff would not be such a saving as it is hard to buy 4 years worth of pasta and store it and there is not much of a reward given its low value.

    so currently your sailor has decided to delay buying a new dinghy £10k because of economic uncertainty. The Chancellor then announces a temporary cut of 2.5% in VAT prompting chummy to hitch up his trailer and stopping only to withdraw £9,750 from the bank makes his purchase.

    He could use his new purchase to transport a quarter of a tonne of Tesco pasta back home
  • rick_chasey
    rick_chasey Posts: 75,660
    rjsterry said:

    Would love to know how pushing Mark Sedwill out and replacing him with a SPAD fits into the professed aims in Goves's speech.

    I half expect this speech to be a cover, a sort of shiny new thing to occupy the more centrist conservatives whilst Cummings gets on with breaking various parts of the civil service, on the false assumption he can rebuild it better, when he'll probably end up just doing the breaking bit.

  • rick_chasey
    rick_chasey Posts: 75,660
    Stevo_666 said:

    Stevo_666 said:



    surely this time around the spending will come back anyway especially as the govt has tried to preserve businesses and jobs. In the meantime why launch infrastructure projects that will run for decades?

    looks to me like the cuckoo is hiding his reasons for wanting massive hikes in govt spending

    Really not. I think the level of economic scarring has not been revealed yet but it looks horrendous. Properly horrendous.
    If it has not yet been revealed how can it look horrendous?
    So we currently have large swathes of the economy on life support - so we can't see yet which bits will die as soon as the taps are turned off and which won't.

    If you go industry by industry however, it's hard to see an industry that isn't going to see gigantic losses.

    There are entire industries that will take an absolute battering. That has knock-on effects.
    So what you're saying is that the effects haven't been revealed yet, but you are predicting fhat it will be horrendous.

    There are quite a few sectors that will not see 'gigantic' losses and a few that are doing pretty well - based on the reports that I have seen (the sort produced for institutional clients rather than for the mainstream media). I can dig out some more later if you want a more detailed and relatively unbiased view?
    I can get plenty myself.
  • Stevo_666
    Stevo_666 Posts: 61,814

    Stevo_666 said:

    Stevo_666 said:



    surely this time around the spending will come back anyway especially as the govt has tried to preserve businesses and jobs. In the meantime why launch infrastructure projects that will run for decades?

    looks to me like the cuckoo is hiding his reasons for wanting massive hikes in govt spending

    Really not. I think the level of economic scarring has not been revealed yet but it looks horrendous. Properly horrendous.
    If it has not yet been revealed how can it look horrendous?
    So we currently have large swathes of the economy on life support - so we can't see yet which bits will die as soon as the taps are turned off and which won't.

    If you go industry by industry however, it's hard to see an industry that isn't going to see gigantic losses.

    There are entire industries that will take an absolute battering. That has knock-on effects.
    So what you're saying is that the effects haven't been revealed yet, but you are predicting fhat it will be horrendous.

    There are quite a few sectors that will not see 'gigantic' losses and a few that are doing pretty well - based on the reports that I have seen (the sort produced for institutional clients rather than for the mainstream media). I can dig out some more later if you want a more detailed and relatively unbiased view?
    I can get plenty myself.
    Seems like they aren't quite telling the same story for some reason....
    "I spent most of my money on birds, booze and fast cars: the rest of it I just squandered." [George Best]
  • morstar
    morstar Posts: 6,190
    Surely the VAT reduction is more about giving businesses a bit more flexibility.
    A 2.5% reduction is largely meaningless or invisible to a consumer (non dinghy buyers) so a consumer business e.g. retail can get away with not passing it on and improving their own cash flow.
    B2B may get negotiated a bit harder but you can always get away with retaining some of the difference.
  • Stevo_666
    Stevo_666 Posts: 61,814
    morstar said:

    Surely the VAT reduction is more about giving businesses a bit more flexibility.
    A 2.5% reduction is largely meaningless or invisible to a consumer (non dinghy buyers) so a consumer business e.g. retail can get away with not passing it on and improving their own cash flow.
    B2B may get negotiated a bit harder but you can always get away with retaining some of the difference.

    Like I said, it really depends on whether these cuts get passed on. It would be difficult to enforce, but clearly a govt could lean on businesses to pass it on. There is some doubt as to how effective this is:
    https://taxfoundation.org/germany-temporary-vat-rates-cut/
    "I spent most of my money on birds, booze and fast cars: the rest of it I just squandered." [George Best]
  • morstar
    morstar Posts: 6,190
    Stevo_666 said:

    morstar said:

    Surely the VAT reduction is more about giving businesses a bit more flexibility.
    A 2.5% reduction is largely meaningless or invisible to a consumer (non dinghy buyers) so a consumer business e.g. retail can get away with not passing it on and improving their own cash flow.
    B2B may get negotiated a bit harder but you can always get away with retaining some of the difference.

    Like I said, it really depends on whether these cuts get passed on. It would be difficult to enforce, but clearly a govt could lean on businesses to pass it on. There is some doubt as to how effective this is:
    https://taxfoundation.org/germany-temporary-vat-rates-cut/
    I’m not sure that the government needs it to be passed on.
    I’d say a few spare pounds in a household has less economic benefit than a few hundred pounds in a small business.
    Latter could keep a person in work.
  • rjsterry
    rjsterry Posts: 29,811
    Depends how/what you sell.
    1985 Mercian King of Mercia - work in progress (Hah! Who am I kidding?)
    Pinnacle Monzonite

    Part of the anti-growth coalition
  • rjsterry
    rjsterry Posts: 29,811
    morstar said:

    Stevo_666 said:

    morstar said:

    Surely the VAT reduction is more about giving businesses a bit more flexibility.
    A 2.5% reduction is largely meaningless or invisible to a consumer (non dinghy buyers) so a consumer business e.g. retail can get away with not passing it on and improving their own cash flow.
    B2B may get negotiated a bit harder but you can always get away with retaining some of the difference.

    Like I said, it really depends on whether these cuts get passed on. It would be difficult to enforce, but clearly a govt could lean on businesses to pass it on. There is some doubt as to how effective this is:
    https://taxfoundation.org/germany-temporary-vat-rates-cut/
    I’m not sure that the government needs it to be passed on.
    I’d say a few spare pounds in a household has less economic benefit than a few hundred pounds in a small business.
    Latter could keep a person in work.
    I think in the current climate, if the government announces 2.5% cut in VAT, businesses will be looking to pass that on to remain competitive.
    Stevo_666 said:

    Stevo_666 said:

    Stevo_666 said:



    surely this time around the spending will come back anyway especially as the govt has tried to preserve businesses and jobs. In the meantime why launch infrastructure projects that will run for decades?

    looks to me like the cuckoo is hiding his reasons for wanting massive hikes in govt spending

    Really not. I think the level of economic scarring has not been revealed yet but it looks horrendous. Properly horrendous.
    If it has not yet been revealed how can it look horrendous?
    So we currently have large swathes of the economy on life support - so we can't see yet which bits will die as soon as the taps are turned off and which won't.

    If you go industry by industry however, it's hard to see an industry that isn't going to see gigantic losses.

    There are entire industries that will take an absolute battering. That has knock-on effects.
    So what you're saying is that the effects haven't been revealed yet, but you are predicting fhat it will be horrendous.

    There are quite a few sectors that will not see 'gigantic' losses and a few that are doing pretty well - based on the reports that I have seen (the sort produced for institutional clients rather than for the mainstream media). I can dig out some more later if you want a more detailed and relatively unbiased view?
    I can get plenty myself.
    Seems like they aren't quite telling the same story for some reason....
    Just possibly it affects different sectors differently, as demonstrated by this forum's membership.
    1985 Mercian King of Mercia - work in progress (Hah! Who am I kidding?)
    Pinnacle Monzonite

    Part of the anti-growth coalition
  • Stevo_666
    Stevo_666 Posts: 61,814
    morstar said:

    Stevo_666 said:

    morstar said:

    Surely the VAT reduction is more about giving businesses a bit more flexibility.
    A 2.5% reduction is largely meaningless or invisible to a consumer (non dinghy buyers) so a consumer business e.g. retail can get away with not passing it on and improving their own cash flow.
    B2B may get negotiated a bit harder but you can always get away with retaining some of the difference.

    Like I said, it really depends on whether these cuts get passed on. It would be difficult to enforce, but clearly a govt could lean on businesses to pass it on. There is some doubt as to how effective this is:
    https://taxfoundation.org/germany-temporary-vat-rates-cut/
    I’m not sure that the government needs it to be passed on.
    I’d say a few spare pounds in a household has less economic benefit than a few hundred pounds in a small business.
    Latter could keep a person in work.
    From the link - this is what tne German govt is trying to achieve (and some of the reservations about the tactic):
    "The German government has identified the VAT policy as a tool to boost consumption and provide benefits to lower-income households. However, the evidence on VAT changes raises questions about the efficiency of a VAT rate cut for achieving those goals. Several pieces of evidence from the last recession point to the VAT rate reduction as a weak tool for fiscal support and stimulating demand."
    "I spent most of my money on birds, booze and fast cars: the rest of it I just squandered." [George Best]
  • john80
    john80 Posts: 2,965

    john80 said:

    For those that say a VAT drop would not make a difference I would present plenty of dinghy sailors that would look to save anything up to 20% of the price of their next £10k dinghy. Everyday stuff would not be such a saving as it is hard to buy 4 years worth of pasta and store it and there is not much of a reward given its low value.

    Dinghies being famously easy to store and stockpile.


    I have a few and they are much easier to store than £30k of pasta.
  • john80
    john80 Posts: 2,965

    john80 said:

    For those that say a VAT drop would not make a difference I would present plenty of dinghy sailors that would look to save anything up to 20% of the price of their next £10k dinghy. Everyday stuff would not be such a saving as it is hard to buy 4 years worth of pasta and store it and there is not much of a reward given its low value.

    so currently your sailor has decided to delay buying a new dinghy £10k because of economic uncertainty. The Chancellor then announces a temporary cut of 2.5% in VAT prompting chummy to hitch up his trailer and stopping only to withdraw £9,750 from the bank makes his purchase.

    He could use his new purchase to transport a quarter of a tonne of Tesco pasta back home
    People with money generally buy the big ticket items to suit there agenda. The point is that saving a few pounds on my weekly shop assuming there is even VAT on some of the items as others have pointed out is not noticable. My last campervan buy was done in 2008 when they could not give away vans. I had the money to buy the van either side but just took the opportunity that arose. If we are talking about a 2.5 % reduction then it is a bit pointless. It was interesting to me that the old method of more vat on higher value items did serve a purpose by taxing the rich more than the poor. My food and fixed outgoings will be similar to those earning half my wage.
  • bompington
    bompington Posts: 7,674
    john80 said:

    john80 said:

    For those that say a VAT drop would not make a difference I would present plenty of dinghy sailors that would look to save anything up to 20% of the price of their next £10k dinghy. Everyday stuff would not be such a saving as it is hard to buy 4 years worth of pasta and store it and there is not much of a reward given its low value.

    Dinghies being famously easy to store and stockpile.


    I have a few and they are much easier to store than £30k of pasta.
    In the spirit of the Brexit thread, I don't know how you can possibly know this unless you have actually tried storing £30k of pasta.
  • pblakeney
    pblakeney Posts: 27,490
    Furthermore, by buying in such bulk a discount would apply. Just how much pasta would that be?
    The above may be fact, or fiction, I may be serious, I may be jesting.
    I am not sure. You have no chance.
    Veronese68 wrote:
    PB is the most sensible person on here.
  • rick_chasey
    rick_chasey Posts: 75,660

    john80 said:

    john80 said:

    For those that say a VAT drop would not make a difference I would present plenty of dinghy sailors that would look to save anything up to 20% of the price of their next £10k dinghy. Everyday stuff would not be such a saving as it is hard to buy 4 years worth of pasta and store it and there is not much of a reward given its low value.

    Dinghies being famously easy to store and stockpile.


    I have a few and they are much easier to store than £30k of pasta.
    In the spirit of the Brexit thread, I don't know how you can possibly know this unless you have actually tried storing £30k of pasta.
    Depends a lot on the shape you’re picking, tbf.

    If he’s going for lasagna sheets imma say it’s pretty easy.

    Dried pappardelle on the other hand...
  • surrey_commuter
    surrey_commuter Posts: 18,867
    john80 said:

    john80 said:

    For those that say a VAT drop would not make a difference I would present plenty of dinghy sailors that would look to save anything up to 20% of the price of their next £10k dinghy. Everyday stuff would not be such a saving as it is hard to buy 4 years worth of pasta and store it and there is not much of a reward given its low value.

    so currently your sailor has decided to delay buying a new dinghy £10k because of economic uncertainty. The Chancellor then announces a temporary cut of 2.5% in VAT prompting chummy to hitch up his trailer and stopping only to withdraw £9,750 from the bank makes his purchase.

    He could use his new purchase to transport a quarter of a tonne of Tesco pasta back home
    People with money generally buy the big ticket items to suit there agenda. The point is that saving a few pounds on my weekly shop assuming there is even VAT on some of the items as others have pointed out is not noticable. My last campervan buy was done in 2008 when they could not give away vans. I had the money to buy the van either side but just took the opportunity that arose. If we are talking about a 2.5 % reduction then it is a bit pointless. It was interesting to me that the old method of more vat on higher value items did serve a purpose by taxing the rich more than the poor. My food and fixed outgoings will be similar to those earning half my wage.
    There we go, that wasn’t so hard was it?