Sainsbury warns against potential VAT rise
Justin King, the chief executive of J. Sainsbury, has today warned the incoming UK government to refrain from increasing VAT amid speculation it could be an option considered by David Cameron's coalition government. There is intense speculation that VAT could be increased to 20% in order to replenish the UK coffers but this could stunt growth in the short term and potentially push the UK economy back into recession.
While an increase in VAT could raise as much as £11.5 billion it is the medium-term damage to the UK economic prospects which seems to be bearing most in the minds of retailers. Despite the fact that officially the UK has left the recession many believe that that UK economic recovery is perched on something of a knife edge at the moment. There is no doubt that confidence is very low with regards to the immediate future and until consumers and businesses become more confident about the long-term prospects for the UK economy we are unlikely to see a major bounce.
Over the next few days we will see many lobbying groups pushing their own case to the UK government at a time when uncertainty and confusion about the coalition government's policies are at their highest.
Share this..
Related stories
Where did all the climate change money go?
The United Nations has revealed that despite the fact that 20 nations pledged $410 million a year back in 2001, to be used by developing countries to tackle climate change, there is only $260 million available today despite the fact the fund should be worth in excess of $1.6 billion. There is concern as to whether all obligations signed by the 20 nations back in 2001 have been fulfilled or whether...
Read MoreEU bank bonus rules attract criticism
As we covered earlier this week, the European Union is looking at ways of reducing bonus payments for the European banking sector and deferring as much of the larger payments as possible. It is believed that the EU would prefer to see up to 60% of banking bonuses deferred over a potential five-year period although it has been revealed that taxation on bonuses would be expected upon the award of th...
Read MorePolice bonus payments under review
In what many believe will be a total restructuring of the UK public sector it has been revealed that the police bonus system is to be reviewed, a move which has been backed by Metropolitan Police Commissioner Sir Paul Stephenson. Sir Paul, who is said to have turned down bonus payments of around £100,000 since 2005, believes that the system is flawed and potentially costing the UK taxpayer £40 m...
Read MoreG20 moves from fiscal stimulus to austerity
George Osborne has been attending the latest G20 meeting where the focus has shifted from financial stimulus to austerity. There has been a loud call for all governments around the world to rein in their spending plans and budget deficits to try and rebalance the worldwide economy. It seems that world leaders have now recognised the fact there is no bottomless pit for a long-term fiscal stability...
Read MorePaul Myners backs City bonuses
Despite the fact that Paul Myners, the City minister, has been attacking the UK financial sector and bankers in particular for some months now he has added his weight behind the argument for bonuses and attractive remuneration packages in the City! It seems that the UK government is attempting to backtrack on recent comments and recent regulatory suggestions which would effectively devalue bank...
Read More