I'm just incredulous that Gordon Brown and Alistair Darling think that a 2.5% cut in VAT is going to kick start the economy by getting consumers spending again.
Firstly, retailers can't even shift the stuff on 20% off super duper mega discount splurge days.
Secondly, has anyone in the Government ever had any experience actually running a business? If so they would realise that the administrative cost - not to mention the sheer hassle - of changing all their prices (including the cost of re-printing catalogues and menus etc) is an absolute nightmare. And is any retailer really going to reduce their price from £9.99 to £9.78? I think not.
A friend of ours is the retail director of one of Britain's biggest chains. He has 20,000 different products on sale at 300 stores. We've already offered to send our children over to help out with all the re-labelling...