Is it any wonder that the governments stimulus package for the economy is not working. I didnt doubt for one second that the 2.5% reduction in sales tax would do anything at all to boost sales with the general public.
As the recession deepens and every day the news brings with it the name of another highstreet brand that has called in the receivers, the spending public goes the opposite way and starts to hold on to their hard earned cash.
The sales in Oxford Street pulled the crowds in an unusual series of sales prior to Christmas to draw in the crowds. But they had to offer 20 - 30% off to tempt people with a bargain or two.
What kind of an effect did they think 36 pence off a £20 sweater would cause? Instead of taking 2.5% off they should have dropped all of the sales tax. Reducing many items by 17.5% on par with what we are offered in some shops. Or take the tax off petrol. With over 50% of the cost of fuel being tax, surely if we have that tax removed, the cost of delivery of all goods would lower. The price of food in the USA is far cheaper than here as they have much lower delivery costs. The whole problem really started to begin when costs started rising so much last year when the fuel cost was astronomical. Even the middle classes started to notice they couldnt afford to buy what they used to buy. It was getting to a stage where you knew it couldnt go on much longer. People would have enough and shout and scream and refuse to allow them to continue to take the amount they do. Much like the days of the Sherrif of Nottingham, the problems were founded when the Sherrif (Gordon Brown), taxed the hard working middle classes so much till they couldnt afford it anymore.
Then when the economy started to collapse they try and stimulate it with a 2.5% sales tax reduction. You took all the people had last year Gord, 2.5% is still not putting the money back into our pockets because the nation had to borrow so heavily due just to survive in the good times.
With the Dollar and Pound heading for 1 to 1, will the idea of a summer break be out of reach of the masses soon too? The one thing we yearn for each year to escape the misery and grey of old Blighty. I for one will be glad of the appearance of spring and with it the change it brings. If only we could change the PM this year too!
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