THE rise in VAT will certainly put a lot of money the Government’s way directly from the public.
The more you spend, the more you’ll pay into the Government coffers is one way of looking at it – and the move is expected to raise £13bn a year.
But don’t forget that VAT – or to give it the full name Value Added Tax – is payable on most items.
This ranges from life’s necessities such as petrol, food and clothes through to the luxuries such as sofas and cars.
Figures vary as to what it will cost the average family extra each year, but it could be as high as £500.
It is one of those taxes that stealthily takes the money from your purse and wallet.
As this year unwinds, no doubt the money you thought would last until the end of the week will suddenly run out on Thursday.
And the petrol you pour into your car will only see the gauge rise to half when, perhaps a year ago, it would have been on its way to three-quarters full.
There is only so much money in the economy that can be classed as disposable income.
With the Government getting its hands on more and more, the retailer may well have to do with less and less which could lead to more economic problems.
The onus will be on the Government to keep us fully informed as to what it is doing with all this extra money.