Money Watch – Personal Finance Blog

95% Won’t Spend More After VAT Cut

Just a quick post to point out the results of a survey the Times Online did following the pre-Budget report.

Probably the most interesting question posed asked whether people would be encouraged to spend more money following the cut to VAT.

The result? 95% would not.

This backs up what many commentators predicted at the time – that the cut would have little effect on consumers’ spending habits. Of course, what people answer in surveys, and what they do when they find themselves with 2.5% extra cash in their pockets is another thing.

In all 2,800 readers responded to their questions.

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