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[Nick]

I just read that a 5% reduction in VAT could create as many as 24,000 jobs in construction. This refers to the VAT charged on the labour costs of repair and maintenance work on residential properties in the UK.

I wonder whether this will ever happen??

[JoseV]

If anything I think VAT will go up rather than down don't you?

[Chris]

There's talk that if Labour get in again they will raise the VAT rate to 18.5%. The move would cost the typical household about £200 a year, according to the Conservatives.

However, it gets worse. A rise in VAT is looming whichever party wins the general election, as Labour and the Conservatives draw up plans to balance Britain’s books.

Alistair Darling and George Osborne, the Shadow Chancellor, are both considering raising VAT to as high as 20 per cent — the European average — from the current rate of 17.5 per cent, they say doing so would raise an extra £13 billion a year at a time when financial markets are searching for signs that whoever takes power is serious about tackling Britain’s £178 billion deficit.

Though Labour and the Tories have of course denied having any current plans to increase VAT, neither will rule it out and a rise in the tax is being considered by both parties. 

[JoseV]

Has the time come to abandon ship and move elsewhere? Will things get that bad?

Surely doing all of this will affect the way that people live and the things that they can afford?

[Newsh]

Agree with Chris as there is no way that any party will reduce it.  I would like to see different bands though to assist ailing areas of the economy - say 20% on retail goods, 50% on supermarket alcohol (to help the pubs), 5% on domestic building work, 50% on fags (to help the NHS) for example.

[JoseV]

Agree with Chris as there is no way that any party will reduce it.  I would like to see different bands though to assist ailing areas of the economy - say 20% on retail goods, 50% on supermarket alcohol (to help the pubs), 5% on domestic building work, 50% on fags (to help the NHS) for example.

Now this is a smart idea - a band system would definately work better! Better than them taxing everything at higher rates?

[Newsh]

I take that as a vote for me then JoseV?  

And you have not heard my policies yet on:

• Prisons - lets build loads more
• Transport - more road widening projects, better railway connections

• Housing - more needed
  
  
  Not that my manifesto would be totally full of self-interest of course!

[Nick]

You definitely get my vote Newsh   

I think the government should reduce public sector pay before hiking VAT - essentially, it's a tax on private sector businesses 

[Keith Williams]

Banded VAT would be a good idea: but I can see the banks, insurance companies, etc, lobbying against it purely because of the millions it would cost them to change their financial systems to accommodate the change.

Mind you, big IT consultants would stand to make a mint...

Actually I don't know why I'm supporting it - if it ever happened I'd be one of the poor sods who'd have to rewrite the databases to handle it

[JoseV]

I take that as a vote for me then JoseV?  

And you have not heard my policies yet on:

• Prisons - lets build loads more
• Transport - more road widening projects, better railway connections

• Housing - more needed
  
  
  Not that my manifesto would be totally full of self-interest of course!

Hehe Mate I would definately vote for that! Lots of work is definately the way forward hehe 

[Nick]

Actually I don't know why I'm supporting it - if it ever happened I'd be one of the poor sods who'd have to rewrite the databases to handle it

Now that sounds like fun  Would you get paid for it?