Rishi Sunak ‘plans emergency cut to VAT’ to rescue economy
RISHI Sunak is eyeing up a VAT cut to help breathe new life into the economy.
The Chancellor is considering slashing the shopping tax to turbocharge spending in Britain’s reopening high streets.
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It is part of his multi-billion pound spending plan to get businesses back on their feet after Covid.
He is considering temporarily slashing the 20 per cent levy, which is slapped on things like food, clothes and computer games.
While VAT could be axed altogether on some products to kick-start spending, The Sunday Times reported.
Businesses could be able to defer their VAT spending for another three months, under the economic blueprint.
It would not be the first time Britain has slashed the levy in a bid to boost the economy.
Back in 2008, during the global financial meltdown, Labour chancellor Alistair Darling slashed it from 17.5 per cent to 15 per cent for 13 months .
Tory MP Sajid Javid – Mr Sunak’s predecessor as Chancellor – backed the slashing of VAT.
He said: “If it’s temporary and you actually end up turbocharging growth, in the long term you could make a lot of that back.
“The priority has to be job creation.”
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The Chancellor and PM are finalising plans for another big economic plan to put rocket boosters on the economy.
The Sun exclusively revealed yesterday that ‘dishy Rishi’ could slash National Insurance contributions for employers to spark a hiring spree.
The Chancellor believes the move will help struggling businesses get back on their feet.
After wages, NICs are the biggest cost for bosses.
It costs an employer £2,400 on average for every person they employ, according to experts at the Institute for Employment Studies.
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