TaxAdministrationIMF chief says VAT cut not enough for UK

IMF chief says VAT cut not enough for UK

VAT cuts not a good idea, says IMF chief economist, and more might need to be done

Alistir Darling

It was ‘not a good idea’ and did not give consumers a ‘real incentive to
spend’. That’s the verdict on Alistair Darling’s cut in VAT from the chief
economist at the International Monetary Fund.

Olivier Blanchard made the comments in an interview with leading French
newspaper
Le
Monde
.

However, Blanchard reiterated his support for a fiscal stimulus, but
suggested it might have to be larger than previously stated at 2% of GDP.

‘If the circumstances require it, states must be ready to do more – 3% or
more if necessary. We must think about it now because it is not easy to spend
such large sums of money efficiently,’ Blanchard is quoted saying.

But he went on: ‘Temporarily cutting VAT, a measure that was adopted in Great
Britain, does not seem to me to be a good ; 2% less is not perceived by
consumers as a real incentive to spend.’

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

7h Lucy Skoulding, Reporter
UK votes to leave EU – accountancy profession reacts

Accounting Firms UK votes to leave EU – accountancy profession reacts

1y Fraser Simpson, Reporter
Bid to cut VAT bill on wedding venue hire rejected by Tribunal

Administration Bid to cut VAT bill on wedding venue hire rejected by Tribunal

2y Richard Crump, Writer
Harrow accountant convicted of Gift Aid fraud

Administration Harrow accountant convicted of Gift Aid fraud

2y Richard Crump, Writer
EC presents action plan to combat ‘staggering’ VAT gap

Administration EC presents action plan to combat ‘staggering’ VAT gap

2y Fraser Simpson, Reporter
HMRC to appeal £1bn Littlewoods VAT repayment ruling

Administration HMRC to appeal £1bn Littlewoods VAT repayment ruling

2y Calum Fuller, Reporter
HMRC probes grab £3.9bn extra VAT from SMEs

Administration HMRC probes grab £3.9bn extra VAT from SMEs

3y Chris Warmoll, Writer
HMRC updates tax fugitives’ gallery

Administration HMRC updates tax fugitives’ gallery

4y Richard Crump, Writer