Thanks Mr Darling. VAT'll (not) do nicely
Thank you Mr Darling.
I could have said: "VAT'll do nicely," (remember the American Express ad of the late 1970s?)*
Except it doesn't do nicley at all.
Next week , as a result of the chancellor's generosity, I'll save an utterly insignificant 45p on my big shop.
I've just returned from my regular outing to the evil emporium.
I usually leave supermarket receipts in a pocket so they get all mashed up in the washing.
But this time I held onto it and scanned the list of groceries to see what an economy-boosting difference this week's cut in VAT to 15% will make when it comes into force on Monday.
The answer is barely more than zero.
Pretty much everything that on your typical grocery list is zero-rated for VAT, ensuring that shoppers like me save virtually nowt.
Except, bizarrely, for the savings on toilet paper.
Next week, you'll be relieved to learn, a dozen rolls of Andrex will cost you 11p less.
Don't spend it all at once.
The most expensive item in my trolley was a very pleasant bottle of Scotch whisky - the Bailie Nicol Jarvie - which has lots of old-fashioned writing on the label but is dead cheap.
Down next week from a bargain £12.19 to £11.93, saving 26p.
Kitchen roll - an unquestionable luxury - tumbles from £1.15 to a jaw-dropping £1.13.
Chocolate buttons, the giant ones of course because they taste much nicer, will plummet from 98p to 96p.
And a big carton of lovely orange juice is about to drop off a price cliff from £2.00 to £1.96.
By the way, if you want to this yourself, just multiply the current price of a VAT item by 0.9787234 and you'll get the price with VAT at 15%.
No really. (My remarkably clever wife worked this out for me).
So little of the stuff we regularly buy to fill our bellies is VAT-able - which is a good thing, of course.
It just means that the chancellor's grand gesture makes virtually no difference.
*And the Pamela Stephenson take-off on Not The Nine O'Clock News? Can't find it on youtube unfortunately.




