They Put the VAT up, then watch Inflation
Condem VAT, whats it going to be, coming to a shop near you soon.
20% without question.
And very soon too.
people I talk to say 22%
Well as a small business owner its the last thing we wanted, where going to have to absorb it or sell nothing, the true maths means its equivalent to
a 5% rise to us, the 2.5% extra we have to pay plus the 2.5% we have to absorb.
Remember also by the time the 2.5% increase gets to the end product it will show as much more than 2.5%, fuel transport etc........
The NI increase would have been much much kinder to us, but hey ho where condemned.
Going to put at least £100 on most starter kits - knew I should have started before election !!!
Think We all need to hold tight, cos its going to a bumpy ride
They Put the VAT up, then watch Inflation
And don't forget your staff will want a pay rise 
and is the deficit really bad enough to panic and over react about, and risk crippling the economy?
I'm just waiting for a renamed poll tax to be proposed too tbh we are all in BIG trouble, don't care what Fozzie says!
When we got rid of Mrs Thatcher I remember feeling a sense of optimism - ok, it was far from all wine and roses BUT all I feel now is a sense of
impending doom Plus I now have no one to vote for as all us Lib Dem voters have been sold down the river.........
quote:
Originally posted by JoelP
and is the deficit really bad enough to panic and over react about, and risk crippling the economy?
quote:
Originally posted by JoelP
and is the deficit really bad enough to panic and over react about, and risk crippling the economy?
and the torys wouldn't need to if labour hadn't cocked it all up in the first place... 
Just remember who generated the problem - that'd be the bloke who sold all our gold reserves for tuppence ha'penny & then followed it up
by screwing the pension funds - Oh! & lets not forget umpteen backdoor stealth taxes (over 150 I believe) & turned a MAHOOSIVE balance of
payments SURPLUS into the biggest deficit we've ever seen - all in a short 13 years - bet no one can turn it around any quicker!
My take for what it's worth.
Brown spent 13 years spending money he hadn't got. The 'global financial crisis' turned up just in time for him to blame someone else.
Like all debts they have to be paid back eventually, like now. Brown swans off to earn a fortune telling everyone what a genius he is and we have to
pay for his mistakes. You can;t blame the Condems for the state we're in although I suspect they'll get a right kicking about trying to sort
it out.
Very true... Brown was the cause of much of what Con/Lib now have to sort out. Labour were in power for too long and made a mess of it. just like
the Tories did last time around. And Labour did before them... (do you see a pattern here?!) In a way, I'm hoping that the LibDems may be able
to temper some of the more extreme Tory tendencies? Maybe if someone was able to do that with Labour over the last 13 years then we wouldn't be
in the mess we're in.
It's not going to be easy over the next few years, but there's nothing to be gained by whining about it IMHO.
so will we be continuing doling money out in foreign aid? istr shahid malik, the expenses swindling snake (who i'm proud to say no longer
represents the people of dewsbury) preaching about how we'd given away billions to muslim countries. i couldn't care less what faith they
are, but surely we should hang onto every penny until we've sorted our own problems out?
the futures looking bleak
tom
The older ones here (me) remember the last tory government all to well.
My prediction, is higher unemployment, higher inflation and higher interest rates on top of vat.
The only winners will be the rich and the MP's who will set themselves up in some nice directorships before they get booted out.
Seen it all before
I've been predicting doom for a few years now and I'm not stopping now.
As a country we have nearly no manufacturing and produce very few products to export so we are not bringing cash into the country. The pot of money in
the country is ever diminishing and it doesn't really matter what the government does with taxes there is still a finite amount of money
available, if they increase taxes it will just run out quicker.
Life in Britain is going to get very unpleasant for a lot of people in the next few years as a country we have all been enjoying a standard of living
above the level our means can support. At some point the credit is going to run out and we'll realise that we can't import all the nice
stuff we're used to having, shortly after that somebody will notice we don't manufacture anything either.
I think we need to stop importing and try to rebuild our manufacturing and production industries. People are going to have to get used to the idea
that we are going to have to get back to basics.
I'm not very good at putting my thoughts in to words.
Davie
I think Davie has put this into context very well. He's made a point I've been considering for some time. In simple economics with no manufacturing of products you then rely on services but these alone can't keep an economy going can they?
quote:
Originally posted by daviep
I've been predicting doom for a few years now and I'm not stopping now.
As a country we have nearly no manufacturing and produce very few products to export so we are not bringing cash into the country. The pot of money in the country is ever diminishing and it doesn't really matter what the government does with taxes there is still a finite amount of money available, if they increase taxes it will just run out quicker.
Life in Britain is going to get very unpleasant for a lot of people in the next few years as a country we have all been enjoying a standard of living above the level our means can support. At some point the credit is going to run out and we'll realise that we can't import all the nice stuff we're used to having, shortly after that somebody will notice we don't manufacture anything either.
I think we need to stop importing and try to rebuild our manufacturing and production industries. People are going to have to get used to the idea that we are going to have to get back to basics.
I'm not very good at putting my thoughts in to words.
Davie
quote:
Originally posted by SeaBass
I think Davie has put this into context very well. He's made a point I've been considering for some time. In simple economics with no manufacturing of products you then rely on services but these alone can't keep an economy going can they?
The Lib Dems wanted a £10k income tax threshold paid for by closing tax loop holes for the very rich. Con don't want to close tax loop holes for
the very rich so the speculation is that they'll pay for it with a rise in VAT.
The £10k threshold means you'll be £700 pa better off if you work full time. 2.5% on VAT means that if you spend £28,000 pa on stuff,
you'll pay £700 more VAT. For "normal" people who don't have £28,000 a year to spend on VATable things, you'll be better
off.
The morale? Keep the Lib Dems and stop voting Tory?
the 10k threshold will work well for me when i get set up as Ltd because i can draw the 10k as a wage and take anything else as dividend. Previously,
if you took a wage below the tax threshold they would know you were lying as no one really works for 5k a year, but you could vaguely blag 10k as part
time work. Maybe get the missus on 10k too to clean the van! 
quote:
Originally posted by iank
quote:
Originally posted by SeaBass
I think Davie has put this into context very well. He's made a point I've been considering for some time. In simple economics with no manufacturing of products you then rely on services but these alone can't keep an economy going can they?
Well they can if you can successfully sell your services to the rest of the world. Which is why of course our govt sucks up to the banks so much.
The fact that we are up to our necks in debt would suggest that we are failling to sell our services to the rest of the world successfully.
Manufacturing was run down quite deliberately (and started even before Thatcher) because as soon as China/India increased their education to where they could design as well as manufacturer we were going to be toast as we can't compete on cost.
The question is why can't we compete on cost? We should have been developing our industries to be more efficent and thus continue to be competitive. Instead we paid ourselves so much that it was cheaper to import and eventually much of our industry died.
My personal take on the previous 13years was that Labour was traditionally a tax and spend party, Blair realised the only way to get elected was not to tax (too obviously - stealth taxes such as fuel duty and speed cameras don't show up on your pay packet). Which left a him in power needing to spend to fulfil the promises (new hospitals etc.) but not able to raise the money required easily from the voters. So they took the 'I'll just get another credit card and worry about it next month when that one's full' approach and sold the family silver (in this case our gold reserves) to raise the cash. Just like the many people who've tried that you live really nicely until the banks get twitchy and demand repayment which leaves two ways out, bankruptcy or hair shirt and cabbage soup for 5 years+. Neither option seems particularly appealing to me, but I can't see another way short of a major oil find on one of our territories, but I don't hold out much hope that any of them would use that cash pay of the debt if they do - too many shiny things to buy to keep the electorate happy and they'll worry about the debt next week.
Exactly what has happened, and will continue to happen until we the voter stop voting for any party that prmise us everything is going to be OK.
[Edited on 14/5/10 by iank]