Pre-Election Promise re VAT

Friday, June 25th, 2010

Before commenting on this week’s Emergency Budget we thought we’d review some of the discussions that were taking place over the previous few weeks. We’ve found this reference from David Cameron made immediately before election day on the Andrew Marr Show, commenting that he “had no plans to raise VAT”. “VAT is not something we want to do!”

Given that most other aspects of the announcements made in the Budget were promoted within the detail of this interview, it is fascinating that the attitude to VAT is the one major change of heart within a few short weeks. Our own belief is that this was made possible by the continuous hype of the media, and George Osborne adopted a simple choice to meet the expectations of the country given where they had been led by the pundits. Interesting times!

Tags: Andrew Marr, budget, David Cameron, emergency budget, George Osborne, VAT
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