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Re: 'Shock' Contraction in the UK economy
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Originally Posted by Hugh
From the BBC Stephanomics blog [/INDENT] |
Quote:
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"Tax receipts seem to be growing nicely and it's interesting to see that VAT receipts were up almost 9% on last December. Though part of this reflects the higher VAT rate (17.5% against 15%), it also suggests greater consumer activity in December than other sources have reported."
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Surely a VAT rise from 15% to 17.5% should result in an increase of VAT receipts of ~16.5% given equal consumer activity? The fact that it's up by only 9% suggests consumer activity is down.
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