Tory chancellor George Osborne has claimed that the VAT increase is an attempt to pay off the £149 billion government deficit.
This is an obvious lie, because if Mr Osborne and his ConDem colleagues were in any way serious about bringing down the deficit, they would cut expenditure on items which serve no British interests, with foreign aid being high on that list.
Instead, foreign aid is “ring fenced” and actually increased, along with other outrageous wastes such as billions spent on subsidising the European Union, untold billions spent propping up the immigration and asylum racket and even more billions pumped into illegal and immoral foreign wars.
Raising the VAT level will also hamper economic growth in Britain, a fact which has been confirmed by a number of British business organisations.
According to figures published by the Centre for Retail Research and online shopping group Kelkoo, retail sales will fall by about £2.2 billion within the following three months year as a result of the VAT increase.
The British Retail Consortium (BRC) in turn announced that its research had indicated that the traditional January sales period had been greatly shortened and affected by the introduction of the VAT increase.
A BRC spokesman was quoted as saying that they expected to see “a very quiet period over the next few months" as transport, commodity prices, business rates and national insurance all start to rise as the taxpayers are called upon to try and salvage the disastrous effects of decades of Labour and Conservative mismanagement.
To make matters worse, economists at the Bank of England have private predicted that the VAT increase will further negatively impact upon the consumer prices index, which currently already stands at 3.3 percent, well above the Bank’s 2 percent target.
According to the economists’ predictions, the VAT increase is likely to push inflation to around 4 percent in the coming year, which will in turn hamper recovery efforts.
The contortions to which the ConDem regime and its Labour clones resort to try and “recover” from the economic disaster are as pathetic as they are stupid.
Getting the economy to recover can easily be achieved by simply cutting all unnecessary and wasteful expenditure (as listed above) and by rebuilding Britain’s manufacturing base to its former glory through protectionism against globalisation.