Will this work?

Yesterday, Chancellor Alistair Darling unvelied his rescue plan for the British economy.  The miracle oil that is to set the wheels in motion again is a cut in VAT from 17.5% to 15%.  Will this work?  Well, it will give everybody a few more pounds but is it enough to make us trust the ‘system’ again or will we continue to sit on every penny we can lay our hands on?  I think so because we are still to see the full consequences of the credit crunch.

It is also interesting to see this in the light that business activity needs a serious boost. Especially small businesses who struggle both because large businesses seem to delay payments to small businesses that can’t do anything about it, and also because banks (finally having learnt from the past) now deny overdrafts and ‘survival type’ loans, etc.  But won’t it also mean that scarce resources need to be spent on changing business procedures?  Will the VAT reduction be spent on the implementation of this?  On adjusting and adapting financial systems.

Yes, it is easy to be critical and I couldn’t have done better but I would really have liked to see this propped up with a promise that all will be done to avoid this happening again.  And how this might be done.  Because isn’t it a lot to do with lack of regulation?

Enough of this scaremongering.  There are things that can put a smile to your face.  The Christmas lights are coming up in Edinburgh and even if the presents will be much smaller this year, isn’t it all about family anyway?

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