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Saturday 27 February 2010

Vince Cable and VAT

The Evening Standard carries a story that the UK began to recover at the ned of 2009 at a much stronger rate than previously thought. I was interested in the quote by Vince Cable towards the end, where he says the economy may slip back as a result of the reinstatement of the full rate of VAT. The reinstatement may well have caused people to bring spending forward, but I seem to remember St Vince saying a year ago that he didn't regard the VAT cut as being a significant stimulus to the economy. Now he seems to think reinstating the full rate will knock the economy back. Sounds a little inconsistent to me.

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