Sorry Steve, which bit and in which context?

I agree Clegg's £10,000 was an attempt at a vote catching bribe which I didn't believe anyway. I've never liked VAT. It was a replacement of purchase/sales tax.I agree that a lower rate of VAT would encourage people to spend more. It was introduced in Britain in 1973, at a standard rate of 10 per cent, In July 1974, the standard rate was reduced to 8 per cent, and four months later a higher rate - 25 per cent - was introduced on petrol. Two years later, this rate was reduced to 12.5 per cent.Under thatcher, the higher rate was abolished in 1979 and a unified rate of 15 per cent introduced. Since then it has been continually extended in the goods and services it applies to. Putting it up to 20% as you say, especially at a time when families will be hit the hardest is more than stupid. It is a social slap in the face for the lower and modestly paid and makes a political point from a right wing government.

The base rate at 0.5% has starved small and modest savers of any return but kept those with mortgages in housing (Unlike the thatcher years when it rose to around 16% and reposessions abounded) Savers with large amounts to invest have always found ways of moving their money around to advantage.

"don't know the maths of it but why not put the rate back to 25%, the pre-Thatcher rate?" I don't understand that bit, are you suggesting that we go back to a sales tax of 25% on everything?

I do know this, that under the last tory government when public utility services were sold off to the rich there were huge job losses. That put many hard working people on a lifetime of unemployment in the name of efficiency. I never considered it efficient to take work away from someone who was productive and put them onto social benefits paid for by the tax payer. It ruins lives and futures.