August 20th, 2010

Do We Really Need the VAT Hike?

Osborne’s budget has convinced the bond markets that this coalition is serious about tackling the deficit. The rally in gilts since the election and budget has been strong, taking 10-year yields down from 4% to 3% in three months, bringing down long term borrowing rates for mortgage holders and capital hungry growth businesses alike.

There has at the same time been a slew of negative-to-soft data on the economic front, given that the deficit cutting credibility of the government is firmly established, to the nigh on elation of the bond markets, Osborne has now earned a bit of leeway. Having already achieved fiscal credibility, if we do get more soft numbers on the economic front, he could afford to suspend the VAT hike due in January. If he goes ahead with the VAT hike and we do see a double-dip, Ed Balls will be well justified in blaming him for adding to the woes of the consumer. The VAT hike will take £13 billion of spending out of the economy.

David Smith, chairman of the Shadow Monetary Policy Committee group of independent economists, says his budget model calculates the move could increase unemployment by 235,000 over the next decade and reduce GDP by 1.4% over the same period. Do we really need to be reducing GDP at this time? The fiscal flagellation is no longer required to appease the gilt market…


329 Comments

  1. 1
    Gone Fuckin mental says:

    George said we do ?

    Like

    • 41
      Engineer says:

      Best way to increase tax revenues for the Treasury? Reduce taxes.

      Like

      • 98
        Free says:

        Guidos focus group.

        Like

        • 136
          Engineer says:

          It’s been tried before, and worked. The more cash people have in their pockets, the more they can spend, thus stimulating the economy….

          Like

          • AC1 says:

            Sort of. Cash doesn’t disappear when its extorted from those who earn it. It’s just spent on things in less demand.

            Like

          • Mr Plum says:

            Not too sure if it will work anymore as most things people buy are imported. Might help service industries as long as they don’t import their labour.

            Like

          • Teabagging 4 evah! says:

            Any Government that puts taxes up are led by Communists.

            Like

          • Tax exile, 'shady financier'...and a political liability says:

            The crowning achievement of a spectacular rags-to-riches story was supposed to have taken place to the cheers of the Tory Party faithful.

            David Rowland, estimated to be the 25th richest person in the country with a £730million fortune, was due to take up his appointment as Tory treasurer at the party’s annual conference in October.

            There is no doubting how deeply Rowland coveted the role – but his dream is now in tatters.

            Indeed, for a man who goes to great lengths to shun the limelight, agreeing to take such a high profile position was a great surprise.

            Since, some very uncomfortable revelations about his business dealings and private life have come to light – and a man once described as a ‘shady financier’ on the floor of the House of Commons wishes to retreat back into his secret life.

            In preparation for his high-profile position, he had relinquished his longstanding status as a tax exile in Guernsey and had returned to Britain.

            http://www.dailymail.co.uk/debate/article-1304723/David-Rowland-Tax-exile-shady-financier–political-liability.html

            Like

          • Engineer says:

            To “A Tax Exile etc.” at 7:42pm.

            See three threads ago, “A Spiv too Far”.

            Like

          • Lord Ashcroft's Revenge says:

            Ha ha ha ha ha ha ha ha ha!

            It’s still funny.

            Like

          • Dave666 says:

            How many things which people want to buy are still manufactured in the UK? So how many more jobs will this approach create?

            Like

      • 328
        Patch Adnams says:

        Erm, no: unless you wilfully misread the Laffer curve.

        And all the flight to gilts shows is investors are leving equity investment because they fear recession and deflation. Guido is out of his depth here.

        Like

    • 43
      Walter Cronkite says:

      I predict a fiasco.
      ps.who won the caption contest?

      Like

      • 48
        Gone Fuckin mental says:

        No-one ever gets told unless there is a prize

        Like

        • 304

          HA HA Guido? Prize?

          Like

          • Can't remember my moniker says:

            Guido wins the contest every week by not having to stump up for a t-shirt, nor the cost of postage, nor the fag of wrapping it up and toddling down to the post office counter, if there are any left open in the land now, and queuing up for bleeding hours to post the sodding thing. We in turn show him our indifference by posting world-class material that Murdoch would pay buckets of dosh for. We individually resolve this by inwardly acknowledging that some other bugger always wins with this form of contest, that the winner is never as witty as you, and that there must be something lacking in the judge’s perception and sense of humour (or otherwise). So we all end up happy.

            Like

    • 64
      Sir William Waad says:

      I’ve got a better idea. Keep the VAT increase but cancel the increase in National Insurance. Don’t penalise job creation.

      Like

      • 112
        AC1 says:

        You are under the vastly mistaken impression that VAT is not a tax on work.

        Like

        • 160
          Tapestry says:

          Hold on. Hold on. Hold on.

          Guido gives the credit to Osborne for keeping the gilts market happy. But is it Osborne who has made US Treasuries surge, Japanese, German, Australian and Canadian bonds surge along with most corporate and municipal bonds in all corners of the earth – in major economies? Hardly likely.

          The surge into bonds is caused by nothing other than the market’s perception that inflation is dead, and that deflation is bearing down on us all – hard.

          The UK manages to keep inflation going by means of banks being permitted to overcharge, petrol prices being kept at all time high, gas too, even though gas has fallen from $14 to $4, and Crude oil is $73 today, down from $140 at the peak. Basically the government permits big business to screw us all over…meaning the EU.

          In the US where the consumer is far more powerful than in the UK and the EU, inflation has been zero for the last three months, and the economy is on the verge of deflation. It would be exactly the same here if the big corporations and banks were properly supervised.

          Sometimes Guido’s financial thoughts are a tad parochial.

          The VAT or no question that he raises is a good one, I agree. I would cut income tax at the same time so that the economy rewards effort.

          Like

        • 196
          Teabagging 4 Evah! says:

          Because he’s a Communist.

          Like

    • 308
      The Tories (and Lib Dems) Inc. says:

      Making rich people richer, its what we do.

      Like

    • 324
      Up sh1t creek says:

      What we need is the feckless borrowers to suffer in the recession THEY created, rather than stealing from savers, and keeping all the bad money in the economy.

      The theft by the collusion of the government, Bank of England, and banks of savers cash / plummeting private sector pension payouts should be punished by savers.

      House prices are way out of control, and only a proper asset price crash in the price of houses will get the UK economy recovering.

      Once the savers cash is gone / confiscated, what will prop up the ponzi UK house price economy then?

      Like

  2. 2
    Gone Fuckin mental says:

    and if we dont put up vat we will have to raise other taxes ?

    Like

    • 56
      Anonymous says:

      Of course it it is the Irish Party thing to do they raised it from 10% to 15% under Maggie, of it is the right thing to do! Do not argue with George he will get very angry and you will not like him when he gets angry.

      Like

    • 306
      Peter says:

      It would be better not to raise VAT and get rid of universal benefits instead.

      Like

  3. 3
    AC1 says:

    Do we need a VAT hike?

    No, it’s the worst form of tax on employment.

    Like

    • 4
      AC1 says:

      and thus the worst for the economy.

      Like

      • 26
        concrete pump says:

        I’m an economics mong, could you explain why raising VAT would be bad?

        Like

        • 46
          AC1 says:

          Who do you think Creates Added Value?

          It’s employees. VAT is a tax on employment.

          When you tax something, you get less of it.

          Like

          • The Labour Party says:

            And when you subsidise something you get more of it.

            Hence record teenage pregnancy, long-term disability, record debt.

            We really are utterly fucking incompetent.

            Vote Labour.

            Like

        • 50
          The Url Of Sarny says:

          I paid 1 pound for a loaf yesterday.I just had to pay 1.43 for the same .a 43% increase in less than 14 hours.Up VAT to 20% and the riots will start

          Like

    • 23
      Rip Van Winkle says:

      Why??

      Like

    • 44
      Selohesra says:

      I dont see whats so wrong with a VAT hike:
      - we did not notice it go down when Labour dropped it as a gimmick
      - its avoidable for the poor as long as they dont spend their dole on take-aways, Stella and plasm TVs

      Like

    • 49
      Hugh Janus says:

      I thought NI was the ‘tax on jobs Much more so than VAT surely?

      If the VAT rise is shelved, how else do we raise the revenue? We certainly cannot continue as we are. Prudence may have been rogered senseless before being hung drawn and quartered by McBust but she should have a leading part to play in the nation’s shattered finances.

      Like

      • 116
        AC1 says:

        Employee NI is 11% & VAT is 20%, However I did forget employer NI @ 12%

        So they are roughly equal.

        Once you Add up.
        Corporation Tax
        VAT
        Employer NI
        Employee NI
        Income Tax

        You realise why the economy is so fucked.

        Like

        • 118
          AC1 says:

          BTW As aGeorgist I would always suggest an LVT.

          Say 1% of the Land Value (i.e property price – cost of insuring).

          Like

          • Can't remember my moniker says:

            Ah! I get my answer at last…..! I had asked you long ago what strand you supported but I never saw an answer. I think I am correct in saying that Georgism is the original form of LVT, posited by Henry George 1839-1897.

            Wiki page: http://tinyurl.com/4ehsr6

            Life of Henry George by his son, Henry George Jr: http://tinyurl.com/37d9d2n Just click on contents and it can be read chapter by chapter.

            The page for International Union is here: http://tinyurl.com/2ufbxwc

            The issue of LVT/Citizen’s Dividend is an interesting one. Being so different from what we experience, it requires some application to contemplate the effects that such a change would introduce although the basic idea itself appears pretty simple, at least to my thinking. My position is that I am not converted to it yet, but I could imagine becoming so. The practical steps required to bring about its introduction would be immense due to natural human inertia and vested interests which prey on such inertia.

            AC1, you appear to be fighting its corner more now. If you believe in it, to the extent you obviously do, you could have given me the pointers I had requested. For those who want to explore the issue, I offer the above links as a modest start.

            Like

        • 133
          jgm2 says:

          Indeed. And with all that tax coming in Brown was still borrowing money for the last ten years.

          Totally fucked.

          Like

        • 307
          Alan Philip Bonggg says:

          Oh yes AC1 Corporation tax. What a fiasco under the McMentalist. Gordon tried to encourage self employed to incorporate (makes the figures look good so they can claim NewLabour has encouraged the creation of new businesses). by offering small companies 0% for the first £10,000 profit, with a marginal rate up to £50,000 at which point it leveled at 19%. So lots of self employed window cleaners and people with low income took up the offer and invested in setting up their companies via accountants.

          What happened next was unbelievable. Gordon realised that this meant the treasury was losing money – something that only he could not have foreseen – so he cancelled the policy leaving the businesses with the smallest profit (and therefore the most vulnarable) out of pocket or bunkrupt. Then increased corporation tax for small businesses to 22%. Fortunately, in the first coalition’s budget they reduced it by 1% – still relatively high by a step in the right direction.

          Also in the last budget the coalition pledged to get rid of IR35. Increadibly the beancounters at HMRC seem to be redoubling their efforts at going after people with this legislation while they can despite rarely being successful, costing thye taxpayer a net loss because they target innocent people.

          Rant over.

          Like

  4. 5
    Gone Fuckin mental says:

    Thing is as well , most polls i have seen the public support cuts and the need to sort the deficit out , Your not by chance suggesting Darling was right are you ?

    Like

  5. 6
    Gone Fuckin mental says:

    Or could we avoid a double dip by only rasieing it 1% instead of 2.5% ?

    Like

  6. 7
    Martin"Call me Ed Miliband" Day says:

    A “Double Dip” recesssion is as much a certainty as Ed Miliband becoming leader of the Labour Party

    In David Cameron’s words a “cast iron guarantee”

    Like

  7. 8
    Gone Fuckin mental says:

    “Ed Balls will be well justified in blaming him for adding to the woes of the consumer.”

    Who listens to a fuckin word he says ?

    Like

    • 11
      Yvette 'haven't had a real shag in years' Cooper says:

      I do unfortunately…….

      Like

      • 54
        Unsworth says:

        I know NuLab bints are pretty thick, but even you should understand the difference between ‘listening’ and ‘hearing’.

        Like

  8. 9

    I recall during the election, proposing a 2.5% National Emergency Tax (NET) a catchall tax on all incomes, from welfare payments to high earners, no exception not even off-shore earners, a real catchall tax and added to this the same NET aplied to all after retail sales, that retailers not customer pay.
    Tell this to George

    Like

  9. 10
    Gordon Brown says:

    I will be making a statement to the house at 16.30 about this .

    Like

  10. 12
    Ed Balls says:

    I can confirm if elected Prime minster i will raise vat on Window Lickers to pay for the Tory Debt .

    Like

  11. 13
    I hate New Labour says:

    This is the trouble when you get chancellors who are not economically trained, Brown and Osbourne both have History degrees – they wouldn’t get a job teaching economics to A Level students!

    To them 2.5% is not a big deal, which it isn’t, but it damages consumer confidence. And I’m no economist, but I know the market is built on confidence.

    Osborne, don’t be like Brown – admit a mistake and reverse this ludicrous decision.

    Like

    • 15
      Steve Slaphead Hiltons Hairdresser says:

      They wouldn’t let any old sod off the street pilot a plane or drive a tank would they so why do we have to put up with letting people with no relevant qualifications take a job they are not qualified for?

      Like

  12. 14
    Steve Slaphead Hiltons Hairdresser says:

    The only way you can put money into the economy these days is getting pissed, smoking fags and shagging prostitutes everything bluddy else is owned by multi-nationals.

    Like

  13. 16
    gregoriad says:

    hmmm guido, what was your view regarding the VAT cut that Gordon introduced? The reality is the fiscal situation this country faces is a nightmare, and a combination of severe spending cuts and annoying tax rises are the only solution….I hope and pray the government sticks to its guns and these early (and rather meaningless) positive numbers on borrowing do not put it off the path of fiscal rectitude it has bravely chosen

    Like

  14. 17
    Fiddler-Diddler says:

    I now buy things that used to be made in the UK but are now made in China.

    When I buy these foreign made things I have to pay the government what will soon be a fifth of its value as tax and VAT Tax receipts are part of what is calculated to be the revenue that has to be paid annually to the EU.

    Its like a quadruple-whammy: British manufacturing jobs have gone to China, British consumers have to pay VAT on top of the money paid to the importer (who in turn pays China), the environment is hammered shipping the goods here and then, to cap it all, because I consume, I end up being a net contributor to the EU who wants to regulate me to force me to be Green, fly the EU Flag and want me to pay more VAT.

    It sounds like the script for a very successful comedy show but it ain’t funny!

    Like

  15. 19
    Anonymous says:

    When can I start

    Like

  16. 20
    bofl says:

    as fiddler said.it is beyond a joke……

    the uk economy is a wasteland…….

    we will never get back all the manufacturing jobs,banking and insurance,IT,telecoms etc that have been offshored…….

    what the f+ck were george and dave doing while mcmental and other traitors allowed the uk to go down the plug-hole?

    answer: zero!

    stop taxing everything and giving our money away to every tom,dirk,mustapha,hans,didier und pedro!!!!!!!

    we are enslaved yet everyone seems to bury their heads in the sand…….

    Like

  17. 21
    John Smith says:

    These bastards gave me notice by text.

    I bet the scumbags vote Tory

    THE Beckhams have culled their staff by a third after a horrified accountant warned: “You’re pouring money down the drain.”

    Read more: http://www.thesun.co.uk/sol/homepage/news/3103927/We-have-to-make-cutbecks.html#ixzz0x9rCnqDO

    Like

  18. 22
    jgm2 says:

    Surely the reason the gilt markets are pricing debt at 3% is precisely because of the VAT hike. Ie Cameron has shown he’s serious about cutting spending and increasing taxes to pay off Brown’s monstrous debt.

    If Cameron cuts the VAT hike then the markets will begin to think he’s an economic incompetent afraid to take tough decisions. An incompetent from the same mould as the Maximum Imbecile.

    It’s a chicken and egg deal.

    Like

    • 36
      G. Brown - Deficit Denier-in-Chief says:

      All these number things and graph wotnots. I always found them very confusing.

      Like

    • 325
      Ed Balls lover of Keynes and Blanchflower says:

      We intended to raise the National Insurance tax because the lovely Gordo got away with doing this before. You see we promised not to raise tax but the foolish proles don’t realise that NI is a tax!

      As for the markets, who gives a stuff, we don’t believe in them we are deficit deniers. If you deny this ficticious deficit then there won’t be a double dip recession, aum aum aum.

      Like

  19. 24
    Eileen Critchley says:

    Just take some money back from all those criminal public sector pensions and use that to repay the debt instead – there’s more than enough to see us through until at least 2060!

    Oh how I’d love to go for growth Guido but sacking all those lazy wasters is going to be hugely expensive. They’re set to walk away with massive payouts and colossal pension funds. Win, win, win!

    So as a wealth generating middle Englander I can once again look forward to having a metaphorical fire extinguisher shuvved firmly up my arse without anesthetic.

    Oh look here comes the Rat Catcher in his new Lamborghini!

    Like

    • 32
      jgm2 says:

      The time to fire these characters was on Day one. I can’t believe they’re entitled to more than three months severence on average so although there’d be a big one-off hit buy the middle of September we’d be saving money hand over fist.

      The fairest way to do it is to simply give ‘em the choice of everybody taking a 25% pay cut or 1 in 4 losing their jobs. Just get the entire public sector payroll alphabetically on a single USB and automatically fire one in four. No complaints about sexism, ageism or any of that shit.

      Just fire every fourth one alphabetically.

      Can’t be fairer than that.

      Or a 25% paycut for everybody.

      Your choice lads. Think it over.

      Like

    • 39
      Ratcatcher in his new lambo says:

      Aup need any 2ft rats shooting? Made a mint in Bradford the other day.

      Like

      • 62
        Ever wondered why? says:

        Ah yes, staunchly diverse Bradford, a vibrant mixture of first and third world cultures, co-existing peacefully with a massive rat population. Heaven on Earth.

        Like

    • 156
      Swanky Frank says:

      Can I watch that being shoved up your arse. Sounds great.

      Like

  20. 25
    Gordon Brown says:

    I’ve got a kilt

    everyone should have a kilt

    Like

  21. 27
    Tony Blair says:

    What is tax ?

    Like

    • 40
      The Kinnock Clique says:

      We give up. What is it ?

      Like

    • 132
      AC1 says:

      In the UK it’s a punishment for doing something to help society.

      Like

    • 259
      UK Film Council says:

      Its what Mongs eat on a daily basis, mongs just like us!

      Like

      • 270
        Gideon Osborne says:

        Stop fucking moaning peasants.
        Taxes are for poor people, not for Millionaire Tories.
        Just cough up and stop fucking whingeing.
        Rich people don’t pay tax.

        You peasants will have to pay the deficit while we Tory millionaires on the front bench and our millionaire banker friends will protect our interests.

        I have decided the ratio to reduce the deficit will be 80% service cuts and 20% tax increases so that we millionaires don’t pay our fair share in the deficit reduction.

        If I wanted a fair and progressive budget I would of course have reversed that ratio and made it 80% tax increases and 20% service cuts.
        But that would have cost us millionaires too much of our unearned income so I ditched that idea straight away.

        After all, why should us millionaires pay our way when we can get you fucking peasants and cripples and low paid workders to pick up the tab?

        Jolly good wheeze, isn’t it.

        Like

  22. 28
    A liberal says:

    Yes

    Like

  23. 29
    Public Lavatory Attendant says:

    Oy Vey !!!!

    Organizers of the Commonwealth Games called a press conference this week to talk about how prepared New Delhi was to host a sporting event for 71 countries. Instead, they fielded questions about how much they paid for toilet paper.

    Allegations of corruption and mismanagement are overtaking a tournament that Prime Minister Manmohan Singh said would “signal to the world that India is rapidly marching ahead with confidence.” The Economic Times newspaper, citing internal documents, said organizers bought $80 rolls of toilet paper, $61 soap dispensers and $125 first-aid kits.

    Like

    • 79
      Mike Hunt says:

      whoops, bet they are annoyed that got out.

      Let’s see what the 2012 accounts look like, it would not surprise me one iota to see similar items on the list.

      Like

  24. 31
    Mr Plum says:

    I suppose we can all reduce our vat bill by not buying so much.
    That will teach them

    Like

    • 37
      jgm2 says:

      Our family has reduced its tax bill by sover one hundred thousand pounds a year by the simple expedient of doing no fucking work.

      50% tax?

      Go fuck yourself.

      Like

      • 45
        Going on the rock n roll like everyone else says:

        Can’t fault you.

        Pride is an expensive luxury that few can afford these days.

        Like

      • 131
        AC1 says:

        It’s been over 50% or years.

        Add
        Corp tax
        ERNI
        EENI
        VAT
        IncomeTax
        and Inheritance tax

        and you get rather fucked for creating.

        Like

        • 275
          AC1 is a freeloader who doesn't pay tax yet complains about tax all the time - what a wanker says:

          You don’t pay any income tax so why are you complaining?
          You’re such an idiot AC1.

          Like

  25. 33
    Gone Fuckin mental says:

    There only doing it to get in line with the eu

    Like

  26. 34
    synonymous says:

    just caught the end of the Michael Ball show – it was bollox – anyhow, that erstwhile labour luvvie Konnie Huq, who was a PPC until she pulled out earlier this year, was on it – she was stupid as fuck – she’ got a job on some Simon Cowell show without apparently even applying for it …. wouldn’t that be nice for the rest of the unemployed hey ?…. see it’s not what you know it’s who you know that still counts in UK2010

    Like

  27. 52
    Mad, Bad & Dangerous Gordon McRuin says:

    How do you like my first US$ 100,000 speech ??

    http://tinyurl.com/2vwkdbp

    Like

  28. 57
    purpleline says:

    There is no way he will reverse the VAT increase and nor should he. It is not a regressive Tax at all and it will not push us into a double dip.

    Everyone and his mum is talking double dips, in fact we will not go into a double dip as we are bumping along in an L shaped slow recovery.

    September will see Madness in the markets and the flight to Gilts will continue, I see the yield going down to 2.5% and VAT being seen unusually as a positive cap on inflationary trends in the wider sense. It will show commitment to balance budgets reduce historic high debt levels thus bearing down on real rates and thus inflation. In the short end it will add a small bit to inflation, but overall it will be positive.

    I see the UK becoming the HK of Europe with major trade advantages of using the commonwealth.

    I’d like to see the Treasury do something really off the radar and float UKFI or allow UKFI to issue convertible bonds linked to Lloyd’s and RBS holdings.
    The bonds can have an interest above the current market and paid for by the income stream from the insurance fees and dividend income from both banks.

    A quick 5 or 10 year Bond would generate a lot of interest and could be
    designed for UK pension funds and individual private UK citizens.

    I feel the UK is getting back to its best. And after the last shower I would not care if Balls says anything, he is a nutjob.

    Like

    • 83
      The Winners says:

      Like the bond idea.vat of 25% on luxury goods and brand name fashion clothing,the likes of the stuff trading standards go hunting for copies of in boot sales etc.But nothing on the necessities of life.

      Like

    • 127
      AC1 says:

      and a unicorn for every field.

      Like

  29. 60
    Sir William Waad says:

    My economic forecast:

    Over the next six months, things will be quite a lot like they have been over the last six months, but not exactly the same.

    And that, ladies and gentlemen, is as accurate as anybody can be. Any numerical forecast,where neither the mechanisms are fully understood, the equations soluble or the underlying data accurate, is merely a restatement of the assumptions made by the forecaster.

    Like

  30. 63
    NO VAT AT ALL U ROBBING BASTARDS says:

    The VAT hike is needed so the Lib Dems can spend it on social projects.

    A bit like Labour did, except on a smaller scale.

    It makes them feel grown up & important.

    Like

  31. 67
    Tim Lovejoy says:

    Hi , My names Tim Lovejoy and i am a BBC legend who agrees with Guido about VAT .

    Like

    • 106
      Gone Fuckin mental says:

      No you aint , you was a bit funny with that blonde bird on sky a few years ago but apart from that you are a nobody !
      No in fact you are a arsewip , A dip shit and a talantless wanker that should be shot up the arse !

      Like

  32. 71
    2048 says:

    thanks to Brown we all owe about 10,144 quid each.thats about 170 quid a month in repayment over 5 years.without interest. Now how could one of those pay all your debts by borrowing sort that out.

    Like

  33. 72
    Scoliosis says:

    VAT and inflation increases will hit the poorest hardest.

    Like

    • 85
      GrimeLord says:

      The number of poor people in the UK is very, very small. By poor I mean all they have is a few possessions, no housings, little or no money.

      Or do you mean poor as in have an iphone, PS2, smoke, drink, eat fast food constantly and wear polyester?

      “Poor” people can pay VAT just like me, fuck them, fuck them all, scumbags.

      Like

    • 94
      Copper with a criminal record says:

      The VAT hike will be nothing compared to the shitfest that inflation will be by year end. And that as a direct result of the last governments mismanagement of the economy. It is inflation, coupled with deliberately held down savings rates that will further increase the gap between the rich and the not-so rich. Sanity may return by 2012. Not before.

      Like

      • 101
        GrimeLord says:

        My savings rate is crap and with inflation its shrinking.

        Brown is a fucking c*nt.

        I’m going now, have a good weekend!

        Like

        • 227
          Rip Van Winkle says:

          Hang on, hadn’t you noticed, Dave rules, OK??

          My savings rate must be lower than yours but Dave has to keep interest rates down and f**k you to ensure speculators who borrowed up to the hilt are kept in the manner to which they have been accustomed.

          That includes, amongst others, bankers on billion $ bonuses, hedge fund managers also paid billion $ bonuses and Buy to Let ‘entrepreneurs’ who have ramped up on cheap borrowing to but over inflated assets.

          My answer, Up interest rates to 5% overnight and let the f**kers burn!

          Like

  34. 73
    ECB Spokeman says:

    In view of the recent floods in P*kistan , The England and Wales cricket borad can confirm that the England and Wales team will donate the test match at the Oval to the P*kistan team .

    This will be down by our batsmen under performing and giving there wickets away .

    * Its also good for the preventon off terrorism

    Like

    • 76
      jgm2 says:

      Yep. With a bit of luck the flood of Saudi cash to Pakistani terrorists will be diverted to buying a few tents and suchlike.

      Like

    • 77
      The Winners says:

      Can we jump that at a round a bout on the way out of town?

      Like

    • 86
      Banky Moon says:

      P*kistan needs a “fresh flood of support”. (Direct quote from his speech to the UN yesterday).

      Like

      • 91
        Gone Fuckin mental says:

        Nasa took a satilite photo of the area , Said it looked like a bowl of coco pops

        Like

      • 92
        Gordon Brown says:

        Fuck off. Just fuck off. I should be UN Secretary General. I’ve donated billions to tin-pot African and Asian countries. Why do you think I did that? Out of the generosity of my fucking heart?

        No.

        To secure their vote when you fuck off.

        So just fuck off already.

        I’m going to be King of the World. And it didn’t cost me a penny.

        Stick that in your fucking pipe Blair. King of the World.

        Like

      • 99
        Wanky Hoon says:

        Velly solly, sirry mistake. I meant no offence to the p*ki’s.

        Like

    • 103
      jgm2 says:

      England look to be trying to wrap this loss up by teatime.

      Like

  35. 75
    Ming n Mong says:

    Clegg.Whats this,(holding 20 quid note up)?
    Cameron.Its paper with the words 20 pounds on it.
    Clegg.Exactly so whats the problem.
    Cameron.None I’ll get printing.

    Like

  36. 97
    william says:

    if this government had any guts, it would put vat at 25%, with an uplift to compensate in pensions and benefits,and massively increase the point at which income tax and NI start.

    Like

    • 122
      AC1 says:

      If it had any brains it wouldn’t do what you suggest as it would shaft the economy.

      Like

      • 278
        AC1 is a freeloader who doesn't pay tax yet complains about tax all the time - what a wanker says:

        When you start making a contribution to the economy you will be entitled to hold a view on the subject.

        Until that time you will remain to be an economically inactive bullshitter.

        Like

    • 271
      White Van Man says:

      Deary me, I’ve seen more brains in a bag’o’mongies

      Like

  37. 104
    Commuting along the hypotenuse of a right angle says:

    Why is it when you ask a government fuck a simple question you get referred to a complicated document or website.I asked what is the rate of business tax? I am still trawling through a shit website looking for the answer.
    Now assimilate your comestibles you little shits or there’s no telly

    Like

  38. 105
    Bored says:

    anyone got a tip for the nags tomorrow?

    Like

  39. 107
    David Cameron says:

    Might I take this opportunity to wish the England cricketers th every best of luck in the teat match taking place at the Oval.

    If England lose I shall have no hesitation in calling a General Election as I regard it as a vote of confidence

    Good Afternoon

    Like

  40. 111
    Anonymous says:

    It would show character if Dave and George said they were postponing the VAT because economic data suggests it isn’t warranted (possibly damaging.)

    Like

  41. 114
    Ed Milibands Press Officer says:

    Ed Miliband I’ve written to Nick Clegg, asking why he’s apparently abandoned his commitment to tackling tax avoidance http://bit.ly/cLZkov

    Like

  42. 119
    Where's Mentalist McDoom? says:

    Whatever happened to Barefoot Contessa and Nell? They used to be fairly regular here.

    Like

  43. 121
    Gordon Brown says:

    I’m off to Cape Cod to get some Cape Cock. My beloved wife is off to Kent to get some Canterbury C’unt.

    Like

  44. 135
    • 144
      ED-209 says:

      I dont blame him, its the stupid beggars who go to listen that need sorted out….

      Like

    • 145
      Where's Mentalist McDoom? says:

      I could have sworn he said if he lost the election, he’d go into charity work and said he’s not interested in making money.

      Oh, yes, this is where he said it, the day before the election with his beloved wife.

      To avoid sitting through the whole ghastly spectacle, just go straight to 11:05 for where he makes his solemn promise to only do charity and voluntary work. And for utter hilarity, go to 8:35 where he tells us he loves his beloved wife. Aaaaah.

      Like

      • 147
        James Gordon Brown says:

        Charity begins at home comrades

        Like

      • 150
        I hate New Labour says:

        Gordon Brown in tells-another-f*cking-lie-shocka.

        Really, I thought we’d all have learnt by now to ignore anything that comes out of his wonky, lumpy pie-hole.

        Like

        • 152
          Where's Mentalist McDoom? says:

          The way he keeps opening his mouth to breathe is a gross sight. Totally mongnacious.

          Like

    • 148
      Where's Mentalist McDoom? says:

      Good on the Telegraph to pick a photo of McDoom where he looks his most mongtastic!

      Like

    • 288
      AbleTheSpace Monkey says:

      From the Telegraph article:
      It was also speculated that Mr Brown may try to remain in international politics by seeking a role at the World Bank or International Monetary Fund.

      Like

  45. 151
    Ed Milibands Press Officer says:

    I am delighted to announce that this is now “a done deal”

    Charles Kennedy Considers Defection to Labour | As I Please | Big Think
    bigthink.com
    London: Westminster sources claim that the former leader of the Liberal Democrats, Charles Kennedy, has been discussing defecting to the Labour Party, with four or five Liberal Democrat colleagues. The reports have been confirmed by three separate sources, including one close to Ed Miliband’s Labour…

    Like

    • 154
      Nick Clegg says:

      Oh Shit !!!

      Former Liberal Democrat leader Charles Kennedy has found himself close to the top of the Twitter charts today after this tweet from joshuwahwah has been retweeted about a million times, “Three different sources now confirm Charles Kennedy and up to 5 other Liberals are to announce defection to Labour at the end of the month.”

      Like

    • 164
      jgm2 says:

      So Charles Kennedy thinks that the Labour party that destroyed the UK’s economy for a generation offers him a better change of re-election as a Scottish MP than being associated with the Tories.

      No real surprise there.

      These five other Liberal MPs. They’re Scottish MPs too I take it.

      Like

    • 194
      Divide and Conquer the Lib Dems says:

      Looks like Osborne and Couslon’s plan is working.

      Like

      • 211
        Right Wingers. A dying breed says:

        Until they’re left with a minority.
        Is that “the plan”?

        Like

        • 235
          Divide and Conquer the Lib Dems says:

          They don’t think the Lib Dems have anywhere else to go for five years and have locked themselves in.

          Like

  46. 155
    tattyboy the battyboy AKA BrokeJizz Liebore says:

    I like having Gordie fart in my mouth. Yummy!

    Like

  47. 157
    She must be a Labour voter says:

    This woman obviously took a leaf out of Brown’s book on courage.

    A woman branded “Britain’s most disgusting person” after urinating on a war memorial is on the run after fleeing court.

    Wendy Lewis, 32, was given a “guard of dishonour” by angry war veterans – who she told to “**** off” when she appeared at Blackpool Magistrates’ Court.
    But she fled the building 20 minutes later and a warrant has now been issued for her arrest.

    Lewis had been caught on CCTV relieving herself on the Cenotaph in the town before performing a sex act on a man in public.

    She was found guilty of outraging public decency at an earlier hearing and was expected to face a community service order.

    But Lewis, who arrived 40 minutes late for her 9.30am court appointment, promptly disappeared 20 minutes later before her case was called on in court.

    Earlier, Lewis, of Princess Street, Blackpool, had run the gauntlet of angry old soldiers when she first arrived.

    She covered her face with a hood and lashed out at photographers and TV crews as she walked to the court building.

    A handful of veterans, proudly wearing berets and campaign medals on their blazers lined the court steps to form the “guard of dishonour” for Lewis. They clapped and shouted, “Disgusting!” as she entered the building.

    Police officers will be on the look-out for Lewis and if she is arrested this weekend will spend it in the cells until court resumes on Monday morning.

    Like

    • 197
      AC1 says:

      She’s been hired to write a book on Dignity, by the same people that hired Gordo to write a book on courage, and Polly Toynbee to write a book on unearned rewards.

      Like

      • 220
        She must be a Labour voter says:

        Where’s Galloway? He usually defends this kind of behaviour, the fucking traitor.

        Like

        • 237
          Tony Blair says:

          thank you small dog
          he really is a traitor who should have been grovelling at my feet like I did at Bush’s

          Like

  48. 162
  49. 165
    • 184
      Genghiz the Kahn says:

      It might explain why he had such a poor World Cup.

      ‘But now over to Andrew Marr for today’s review of The Sunday Papers.’ (which are going to be given the John Terry treatement, nothing to see, nothing to read….).

      Like

      • 231
        IWoudn'tPayThemWithWashers says:

        That’s his excuse sorted how do you explain the rest of the team having such a poor World Cup?

        Like

    • 218
      S Gerrard says:

      This is a breach of my super injunction.

      Like

  50. 167
    Book of the Day says:

    ‘Cosmetic Surgery’ by Norma Stitz

    Like

  51. 170
    Norma Snockers says:

    I’ve read it cover to cover

    Like

  52. 172
    Non Runner says:

    I think a VAT increase will slow down growth. I think decent poor people will struggle with both inflation and VAT hikes. The private sector will suffer. I hope the government has a rethink on VAT.

    Like

  53. 174
    English Defence League march banned by home secretary says:

    Far-right group still plans to hold ‘static’ bank holiday demonstration in Bradford

    The home secretary, Theresa May, today authorised a ban on a planned march by far-right group the English Defence League (EDL), due to take place in Bradford later this month.

    The blanket ban prevents any marches in the city over the August bank holiday weekend, when the EDL had said it was planning to stage a demonstration members described as “the big one”.

    The Home Office said: “Having carefully balanced rights to protest against the need to ensure local communities and property are protected, the home secretary gave her consent to a Bradford council order banning any marches in the city over the bank holiday weekend.

    http://www.guardian.co.uk/uk/2010/aug/20/english-defence-league-ban

    Like

  54. 180
    Stephen Kinnochio says:

    Just like my dad, I’m all right! I’m all right! I’m all right!

    Like

  55. 188
    Peace Loving Moozee says:

    We own your country now! You can’t protestings in your own country anymores! Soons we will force you to bans the alcohols too!! We wins!!!

    Like

    • 255
      Allah Akbar says:

      not long now until there are enough of us to be able to get away with going round raping your wifes and daughters.

      Like

  56. 190
    GrimUpNorth says:

    Guido should be editor of The Financial Times.

    Why is no one else floating this idea around? Have just come back from Switzerland where economy is booming. Never seen so many tower cranes in Zurich… and they have a 7.5 per cent VAT.

    And while we are on UK tax policy, how about reducing corporate taxes in the North. That is the only way we are ever going to get the private sector going up North and finally wheen this region of 15m people off the public sector tit.

    Like

  57. 191
    Ireland: Austerity gone wrong says:

    So how has austerity worked for Ireland? According to the article, not so well:

    “Rather than being rewarded for its actions, though, Ireland is being penalized. Its downturn has certainly been sharper than if the government had spent more to keep people working. Lacking stimulus money, the Irish economy shrank 7.1 per cent last year and remains in recession.

    “Joblessness in this country of 4.5 million is above 13 per cent, and the ranks of the long-term unemployed – those out of work for a year or more – have more than doubled, to 5.3 per cent.”

    http://www.theglobeandmail.com/globe-investor/markets/markets-blog/ireland-austerity-gone-wrong/article1622863/

    Like

  58. 198
    Gay guilt Market up your arse says:

    Ray Goslin, national hero, facing wasting-police-time charges, after killing a faggot.

    Apparently he slit the throat of a fag whose arse was too slack. Can you blame him Ducky!

    http://www.bbc.co.uk/news/uk-11039999

    Whatever next? It will be soon a criminal offence to bring in orphans from Runamia to bum them to death.

    Like

    • 201
      The view from the bleachers says:

      It’s an offence to steal money from the public purse, but that didn’t stop MP’s.
      It also didn’t stop the great British public returning 400+ of them to Parliament.
      Civilisations go through a period of absurdity, shortly before collapse.

      Like

      • 216
        4 by tooz says:

        Here are some strange laws you can finger your mother to:

        25. It is illegal for a cab in the City of London to carry rabid dogs or corpses.

        24. It is illegal to die in the Houses of Parliament.

        23. It is an act of treason to place a postage stamp bearing the British monarch upside down.

        22. In France, it is forbidden to call a pig Napoleon.

        21. Under the UK’s Tax Avoidance Schemes Regulations 2006, it is illegal not to tell the taxman anything you don’t want him to know, though you don’t have to tell him anything you don’t mind him knowing.

        20. In Alabama, it is illegal for a driver to be blindfolded while driving a vehicle.

        19. In Ohio, it is against state law to get a fish drunk.

        18. Royal Navy ships that enter the Port of London must provide a barrel of rum to the Constable of the Tower of London.

        17. In the UK, a pregnant woman can legally relieve herself anywhere she wants – even, if she so requests, in a policeman’s helmet.

        16. In Lancashire, no person is permitted after being asked to stop by a constable on the seashore to incite a dog to bark.

        15. In Miami, Florida, it is illegal to skateboard in a police station.

        14. In Indonesia, the penalty for masturbation is decapitation.

        13. In England, all men over the age of 14 must carry out two hours of longbow practice a day.

        12. In London, Freemen are allowed to take a flock of sheep across London Bridge without being charged a toll; they are also allowed to drive geese down Cheapside.

        11. In San Salvador, drunk drivers can be punished by death before a firing squad.

        10. In the UK, a man who feels compelled to urinate in public can do so only if he aims for his rear wheel and keeps his right hand on his vehicle.

        9. In Florida, unmarried women who parachute on Sundays can be jailed.

        8. In Kentucky, it is illegal to carry a concealed weapon more than six-feet long.

        7. In Chester, Welshmen are banned from entering the city before sunrise and from staying after sunset.

        6. In the city of York, it is legal to murder a Scotsman within the ancient city walls, but only if he is carrying a bow and arrow.

        5. In Boulder, Colorado, it is illegal to kill a bird within the city limits and also to “own” a pet – the town’s citizens, legally speaking, are merely “pet minders”.

        4. In Vermont, women must obtain written permission from their husbands to wear false teeth.

        3. In London, it is illegal to flag down a taxi if you have the plague.

        2. In Bahrain, a male doctor may legally examine a woman’s genitals but is forbidden from looking directly at them during the examination; he may only see their reflection in a mirror.

        1. The head of any dead whale found on the British coast is legally the property of the King; the tail, on the other hand, belongs to the Queen – in case she needs the bones for her corset.

        It’s sad now that Britain is controlled by hook-nosed Nazi child-killing filth, that the only law is, hook-nosed Nazi can get away with any crime and humans are treated like dogs.

        Like

  59. 207
    Yvette Cooper says:

    Hey – would a muslim country that had something equal to 9/11 happen to it nearly ten years on let a macdonalds set-up shop near the site of the catastrophe? WOULD THEY FUCK!

    Like

  60. 208
    Pi55head says:

    China is a huge ponzi scam.

    Like

    • 214
      HK says:

      true western pig its the easts turn now.

      Like

    • 226
      global debt says:

      and they hold almost all of the US debt
      the Saudis hold most of ours

      Like

      • 232
        Politicians make a lot of promises says:

        What is the value of debt? merely a promise to pay.

        Like

        • 240
          Pi55head says:

          Any detailed description of this phenomenon would baffle the layman, but any comprehensible explanation would insult an expert.

          But believe me, short China if you can get a good price.

          Like

          • Pi55head says:

            Any detailed description of this phenomenon would baffle the layman, but any comprehensible explanation would insult an expert.

            But believe me, 5hort China if you can get a good p.r.i.c.e.

            G.u.i.d.o. obviously wants financial tips before anyone else with the modding lol.

            Like

          • Lurpak says:

            Vraiment, Pi55head, all is not well with our Chinese chums. Their attempts to grab natural resources in e.g. Africa will come back & bite them in the bum.

            Like

          • Pi55head says:

            Gold, Silver or Iron ore will keep the wolves at bay if you can afford to buy it.

            Also it’s not how much you pay for it but how much of the stuff you actually own that is important in the grand scheme of things.

            Stay safe everyone

            Like

  61. 212
    Twat says:

    Well fuck me man while I just pop out and buy some gilts.

    Like

  62. 213

    As far as the last leg up on your chart, Guido, I think you should show your readers the charts for FTSE 100, and maybe GBPUSD.

    Gilts have gone up (thus driving long-term yields down) because there has been a move out of equities. Investors have more faith in the tax gathering ability of this government than the ability of companies to make a profit.

    Sadly, the VAT rise IS needed along with every other revenue gathering means. There is going to be a massive rise in the demand of services as unemployment increases and the restrictions on benefits cause grater demand on security (police, prisons, etc) and healthcare.

    The real fun is going to happen when the markets wise up and realise that their faith in the tax gathering ability of the UK government, that has supported Gilts, is unfounded.

    Like

  63. 217
    Indigo says:

    O/T but what a fruitcake Ruth Deech has turned into. She said (on Any Questions, just now) that “muslims build on conquered land”. Wow, if that were true, I wonder where they got that idea – perhaps from the illegal Israeli settlements in the Occupied Territories going back 40 years.

    And she confused Sikhs with Muslims.

    Like

    • 239
      Pi55head says:

      Someone obviously doesn’t know history.

      Ever heard of the Reconquista? Look it up and then think long and hard why it had to happen in the first place.

      Like

  64. 224
    The Number of the Beast says:

    This calls for wisdom. If anyone has insight, let him calculate the number of the beast, for it is man’s number. Guido Fawkes is 666

    Like

    • 305
      History School Teacher says:

      No no no, I’m afraid your wrong mong, he was originally referring to Nero.
      You remember that mad bad Roman emperor who burnt down half of Rome in the early AD’s?

      Apparently he was the 666 evil cun*t of the book of revelations.

      But as with anything in history its all down to the interpretation, so I guess in the end its completely up to you.

      Like

  65. 225
    Serious Question says:

    If my hats like a lampshade am I a coolie

    Like

  66. 228
    caution says:

    never make a jib of a crane out of lead

    Like

  67. 230
    Krauty says:

    hey Ingurlanders is it true you have der football team called Arschnell

    Like

  68. 238
    Pretty Vacant says:

    The tried and trusted version of British democracy has weathered the storm of Parliamentary scandal, and the financiers are back in the black.
    Ever get the feeling you’ve been had?

    Like

  69. 248
    SploogeBack Liebore says:

    Where’s that hilarious BrokeBack sploot fellow? Is he off giving his Gordie a handjob while McDoom rips an evil fart in his face?

    Like

  70. 267
    Mad, Bad & Dangerous Gordon McRuin says:

    I’m busy writing my $ 100,000 speeches. Here’s my first attempt http://tinyurl.com/2vwkdbp

    It’s brilliant, don’t you think ?

    Like

  71. 280
    tattyboy the battyboy says:

    Sploop

    Like

  72. 281
    Memri Man says:

    FFS, Mossad are posting self hating anti Israeli posts on order order.
    Desperate stuff, guys.

    Anyone for tennis?

    Like

  73. 283
    TaT says:

    so saddos missing me now

    Like

  74. 284
    Wendy Lewis says:

    That graph looks like the stream of piss I did out of my pox-riddles chlamydia muff onto the war memorial (sucking ledge) in Blackpool (Black-enamel-bastard-pool).

    Gorgeous:

    http://i.dailymail.co.uk/i/pix/2010/08/20/article-1304744-0ADB1CC3000005DC-793_468x520.jpg

    Like

  75. 285
    Another late night sitting in the House says:

    Like

  76. 286
    AC1 says:

    I’d love be to be fistally flagellated by tat.

    Like

  77. 289
    Gordon says:

    Step we gaily, on we go,
    Heel for heel and toe for toe
    Arm in arm and row on row
    oops wrong site .Nurse

    Like

  78. 291
    Gil McNeil in Canterbury says:

    Me and Sarah are wearing beards tonight, curled up on our rugs and powdering our noses till the early morn, we are truly in heaven!

    Thank Gordy he’s gone, we can at last see the light at the end of the tunnel…

    Like

  79. 293
    McDoom says:

    Fucking hell Guido this story is boring wank. You’re going off the ball. The medicine appears to have worked and the patient is opening their eyes. Game over.

    Talk about the Labour Party teetering on bankrupcy – that I would read. Crack some funnies about how they should keep on borrowing to support their spending – thats their flagship policy isnt it? Borrow and spend your way out of a hole. I want to hear more about why the Cooperative Bank has supported them for so long despite getting the UK involved in illegal wars, selling peerages and taking dodgy donations Bernie Ecclestone etc. Coop is supposed to be an ethical bank – bollox to that theory.

    Like

  80. 297
    Anonymous says:

    Up the VAT and cut Income Tax. All taxes should allow personal descretion.Income Ta is theft.

    Like

  81. 299
    EDL v UAF in Bradford next Saturday says:

    Ding ding round 57…

    Like

  82. 312
    Genghiz the Kahn says:

    Some coming to a screen near you on The Party Channel. How ot make your party swing by this talentless, spineless Hunt, who couldn’t knife Brown.

    http://www.bbc.co.uk/news/uk-politics-11042243

    Funny how Call Me Dave or David Davis didn’t get this fawning guff on the world’s favourtite state run broadcaster.

    No questions about his father’s tax affairs or his grandfather fighting for Communism in Poland in 1919-21.

    Like

  83. 316
    Zanu Economicsq says:

    Labour gave you Child Credits

    With the borrowed money of future generations…

    Like

  84. 322
    Anonymous says:

    “If he goes ahead with the VAT hike and we do see a double-dip”

    IF ?????????? Ha ha ha.

    It’s the way you tell ‘em.

    Tory government = recession. I’d say by January.

    Like

  85. 327

    With all this uncertaiinty people will want to leave this country but where do we go!!

    Like

  86. 329
    James M says:

    Guido,

    Do you really think it is a good idea to take economics advice from David Smith? A guy who wrote a series of comically bad articles pre-crisis and during the crisis for The Times that entirely missed the mess Labour had made of the economy, failed to understand the disastrous debt bubble, and failed to see how the housing bubble was going to tank the economy.

    The guy is a total waste of space and has made a total fool of himself. Economists seem to get away with this only because everyone seems to have such short memories about how bad their predictions are.

    Like


Seen Elsewhere

Israeli Ambassador’s Letter to Clegg | Twitter
What Became of Cameron’s Big Society Network? | Indy
SpAd Reshuffle | PR Week
Clegg Under Pressure to Expel Ward | Telegraph
Labour’s Teachers Trained in the Art of Brainwashing | Jago Pearson
R.I.P. John Blundell, Former IEA Director General | Atlas
UKIP Hasn’t Gone Away | ConHome
Ward: I’d Be a Terrorist if I Lived in Gaza | Breitbart
Ruffley Faces Deselection | Times
Ruffley Faces Crisis Meeting | Mail
Ruffley Told to Consider Position | BBC


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Sarah Vine writes of Esther McVey…

“McVey told Grazia that she hasn’t married or had children because she ‘never found anyone to wind her biological clock’ … If I remember rightly, half the current Cabinet would have cheerfully ‘wound her clock’ if she’d given them a glimmer of a chance.”



Flight Watch says:

Russia Today is a cauldron of bullsh*t. The only people that take it seriously are deluded conspiracy theorists. Other RT journos have resigned citing the same reasons.

It’s about as believable as Press TV, KCNA of North Korea or the Daily Mirror.


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