Tough Challenge

Well who would have thought it the task in hand must be relatively easy one, all I had to do was deliver a three minute speech at Berkhamsted Speakers Club on Tuesday evening what could be simpler?

The catch was I had to sit down and deliver the speech, sounds easy, not. After a year of delivering speeches walking around my stage area using body language, this task completely through me. Although the feedback from the club was supportive I had to ask my self the question was I satisfied with my performance and the answer truthfully was NO.

So based on that answer I have decided to rework the speech a little and present it again at the next meeting on Tuesday 10th August please come and support me.

As promised here is the speech and I will be reworking it a little for next time.

What Goes Up Must Come Down!
On the afternoon of the 22nd June the Chancellor of the Exchequer George Osborne presented his first coalition budget address to parliament and the country.
As he took his place at the dispatch box in which he gave a 55 minute address and banged on the dispatch box 85 times whilst taking 3 sips of Water he announced that VAT would rise from 17.5% to 20% on the 4th January 2011.

Harriet Harman replied to this by saying that this increase would punish the poorest most.... and that pensioners would have less money in their pockets.
Unfortunately, the new coalition government have to find ways to address the deficit and by raising VAT by 2.5% it is expected that this will raise an additional income of £13 Billion a year by the end of parliament.

The increase will mean that the government do not need to make extra cuts or raise income tax.

Although, many would argue that raising taxes is a fairer and more appropriate alternative as those earning more would pay more tax.

This would not have the effect the government desire, extra income tax rises would force employees to ask for pay increases that would both eventually drive up inflation, and increase the wages bill which could deter foreign employers from trading in the UK. As the government are actively trying to tempt new business to the UK by decreasing corporation tax over the next four years tax rises are certainly not an option.

However it can be said that a VAT rise has a minimal effect on the poor as many items are except from VAT, items such as food, children’s clothing, newspapers and books items that could be described to be the necessities of life.

If you are on a low income are you likely to be buying items that are subject to VAT on a regular basis?

The more positive tax payer may choose not to focus on the VAT increase but on the increase in the personal allowance which will rise from £6,475 to £7,475 next April putting an extra £1,000 in our pocket for those of earning.

Wasn`t it Sir Isaac Newton who said What goes up must come down, who knows in a couple of years time we could be saying what a great chancellor when he reduces the VAT rate by 1%.