SIR – It is obvious from people interviewed in the various news programmes over the last few days that the 2.5 per cent reduction on VAT will have little or no effect in encouraging people to spend more.
In my opinion the cut would need to be at least 10 per cent or 12.5 per cent to give people an incentive to spend more (that’s assuming they are working and earning).
Of course this is not allowed by the European Union, but don’t take my word for it.
It was interesting to hear on the BBC’s Question Time on Thursday, November 27, that the CEO of Sainsbury’s actually said that the minimum VAT charge allowed by the EU is 15 per cent and George Osborne said that the Government is unable to remove VAT from gas and electricity because of EU law.
I am unable to say if any further discussion followed but bear in mind this programme is recorded. I have often said it is Brussels not Westminster that governs this country. Labour may have been elected but they are certainly not in control.
TONY EAVES,
Worcester.
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