A rise in VAT would cost 163,000 jobs

This is the headline figure published today by the British Retail Consortium following a study carried our by the Centre for Economics and Business Research using its model of the UK economy. They found that an increase in VAT to 20% from its current level of 17.5% would result in the loss of 163,000 jobs over four years and a … Continue reading

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Four-to-one gap between rich and poor in UK

The tax and benefit system is obviously working in the UK to redistribute income between the rich and poor, but is it working well enough?   When we look at original income, that is income received before the impact of tax and benefits, the top 20% of households in the UK in 2007-08 received approximately 16 times more than the … Continue reading

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The VAT cut is working

The temporary cut in VAT from 17.5% to 15%, put in place by the Chancellor on 1st December 2008, “is working”, according to a report by The Centre for Economics and Business Research (CEBR). The CEBR had initially called for a 5% reduction in VAT.   Many have argued that because the cut was so small it would have little … Continue reading

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