Maybe because when you look at spending power petrol, energy and just general shopping a pay freeze means a pay cut. A call for these prices to be held down would have gone down a lot better. The retail companies that we hear about closing down, and there seems to be a national chain closing down almost every week, are doing so because the ordinary working people have less in their pocket for luxuries.
An idea I came across last week seemed a good idea but I don't know how the numbers would stack up. (He's says going off topic...sorry)
VAT is meant to be a tax on "luxuries", not necessities, ie its meant to be a voluntary tax...no one forces you to buy a new telly.
So the VAT on all fuel should be zero rated, and paid for by increasing the basic rate of VAT, currently 20% to 25%
So overall the Govt is no better or worse off.
Everyone who has a domestic fuel bill, (gas / electric currently 5% VAT) would be better off.
Everyone who uses a vehicle is better of as petrol /diesel falls by 20%
There for, those who are really struggling, such as fuel poverty, will find it a bit easier.
Most people would be financially better off, so would be able to afford, the new telly, holiday or whatever.
Cost of getting to work, etc is cheaper.
Cost to business is minimal as big businesses are VAT registered so any VAT they spend, they claim back if its business use.
As the burden is shifted from fuel to more material things, manufactures may object as it is making their goods more expensive but it could be argued that, as I said above, people would have more money in their pockets to buy the goods.
The point being really that the tax is moved away from compulsory elements towards areas where we have a choice, so good politically as it would help those with little extra income.
Like I said though, not sure if the numbers would add up.
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