IEA expert quoted in The Daily Telegraph
“It’s hard to imagine a worse combination than a temporary VAT cut to stimulate spending that is likely to happen anyway, offset by the threat of future tax rises that would cast a long shadow over the economic recovery.
“The demand problem isn’t a lack of willingness to spend, it’s the ability to spend. It makes far more sense just to open the shops, pubs and restaurants and cut employer insurance contributions. People would be far more likely to spend if they knew their jobs were safe.”
Read the article in full here.