Was the V.A.T Tax cut the best fiscal stimulus for the UK economy?
I would have gone for a home improvement scheme – esp for pensioners – construction has been hard hit – 50% off loft insulation and other schemes etc over the coming year via the councils / approved suppliers – bill added to council bill and spread over 12 months tax free and first month free. £12 billion better spent. Sale and lease back of toxic loans is an interesting idea – allows the government to buy these loans – sell them back over 10 years so losses are spread over 10 years. So banks balance sheets not so bad and cash injections repayable over 10 years. All large companies (including the government) have to pay their bills within 30 days. Scrap the insolvancy / CVA etc rules – make it so that people & companies can ‘freeze’ the debt at inflation rates and pay back over x number of years – so no bad debt write off loans as such. So many people can (or could) get £50k go on the dole etc and just write it off – same with companies – its just too easy to walk away – as opposed to
