Ed Balls: I'd cut VAT by Monday

Shadow chancellor Ed Balls has stated that he would “cut VAT by Monday” if Labour were back in power.

Speaking in Kent as he tours local micro businesses, the Labour MP claimed that cutting VAT was the best solution to helping the economy grow.

Speaking to Kieran Watkins, Mr Balls said: “It is clear with the economy flat lining that we will lower VAT as soon as possible.

“If we were in government today, I would lower VAT by Monday.”

The declaration by Mr Balls comes after the latest GDP (Gross Domestic Profit) forecasts show the UK economy has shrunk by 0.3%, raising fears of a triple dip recession.

With major retailers like Jessops and HMV going under, Mr Balls warned that the future remained bleak for the UK’s economy.

“Times are really hard for every retailer at the moment, particularly hard for retailers on the High Street such as Jessops or HMV.”

Last year, more than 580 companies in England and Wales fell into administration in the last three months, with big names like Comet and Clinton Cards being the big fatalities of the High Street.

In total, 3,834 companies went into liquidation in 2012. 276 into receiverships and 151 entered into company voluntary arrangements.

But a local Conservative councilor in Medway dismissed Ed Balls’ plans to cut VAT.

Mike O’Brien, councilor for Rainham Central, said: “Having been part of a Labour Government that left the country almost bankrupt I would pay no heed to what he says.”

The Portfolio Holder for Community Safety and Customer Contact for Medway also said: “He is now in opposition and can make grand statements that he doesn't have to substantiate.

Economic advisor for the British Chamber of Commerce, Steve Hughes, explained how much it would cost the taxpayer to lower the VAT.

“Taking the fiscal credibility point first, the cost to the Exchequer of changing the standard rate of VAT by one per cent is approximately £5bn a year.

“In other words, reducing the rate from 20 per cent to its previous 17.5 per cent would cost in the region of £12.5bn.”

In a statement from the Treasury, the department insisted the 20% VAT was helping, rather than hindering the economy.

“The VAT increase raises a significant amount of revenue and is therefore an important part of the Government’s deficit reduction plan.

“Reducing the rate of VAT would undermine the Government’s fiscal strategy, risking a loss of credibility that could have a far larger negative impact on the economy than the positive economic impact that might otherwise be expected as a result of a VAT cut.”

Picture taken by Kieran Watkins

New train station planned for Rochester

A new station for residents in Rochester could help improve train services.

Network Rail plans to move the current station to a new site to allow more passengers to use the station, and allow for a more reliable, quicker service.

The current station, just off Rochester High Street, has few car parking spaces and platforms that can only accommodate 10-carriage trains.

With regeneration on Rochester Riverside already underway, passenger numbers are expected to rise by 30% over the next few years, meaning the current station will be inadequate to support the growing population.

Addressing these figures, Network Rail have proposed to move the current station to Corporation Road Car Park as part of a £25million investment in rail infrastructure.

With more car parking spaces and longer platforms accommodating for 12-carriage and more passengers, it is hoped the plan will prove a hit with the local council and local people.

Councillor Rodney Chambers, Medway Council Leader and Regeneration Lead, said: “If this proposal gets the go ahead it will lead to a new, better train station for Rochester

“It will result in a quicker, more reliable service with more space for passengers,” he added.

The station would be closer to the main town centre then the current station, with a new subway planned to link the station to the shopping parade. Train users would also benefit from being closer to the main bus routes running through the town.

If approved, the station would take up 1/3 of the land on Corporation Road, and would be scheduled to open in 2015.

It is believed Network Rail will submit a planning application for the proposals later this year.

Picture courtesy of Wikipedia

Fashion: how to shop the sales

This week, rather than showing you the latest collections, I’ve decided to reveal all my knowledge of the sales and help you invest your time and money wisely when shopping the sales.

The High Street seems to be full of sales at the moment, with many shops hoping to make up for falling profits during the year. The traditional sales have usually been the big Boxing Day and Summer Sales, but generally now most stores will have a sale at least four times a year (one after Easter, before the start of the summer, and another usually one in October, before Christmas). But don’t presume the sales only happen at regular times in the year; they can run whenever. Unless your DFS (where you’re guaranteed to find a sale every day of the year), stores will pick and choose depending on the retail climate and how much profit they have already made in the year. If a store is losing money, then it’s guaranteed they’ll start their sales early or have them at varying times in the year.

So what does this mean for the consumer? Well, it means you’re guaranteed a bargain. But what constitutes a bargain, and how do I know if you’re saving money? Follow these tips to save as much money as possible:

1) Check the season - generally, most stores will put last season’s unsold clothes in the sale, and these are the ones that are cheaper. Yet increasingly stores are putting current collections in the sale too. When you look in the sales, make sure you’re clothes match the season. Generally, this seasons clothes will be reduced towards the end of the sale

2) Be patient - like I mentioned above, it’s best to wait to the end of the sale to bag yourself a bargain, particularly if it’s a current season item. Most sales will only start with modest discounts of 25-50%, but towards the end, you can get discounts nearing 75% or more

3) Shop around - when shopping the sales, always make sure you visit different shops to compare prices. Sales can be competitive, with stores marketing their discounts so that more customers visit. In the Boxing Day sales for example, a price war between shops can result in some fantastic bargains

4) Check all items vigorously - make sure the clothes aren’t damaged or broken. It’s really important that the quality is still perfect and you should check your clothes before you pay for them. Also, make sure they fit you…there’s been many a time where I’ve gone to buy an item which was on a ‘small’ hanger and taken it home to find it’s a ‘large’

5) Find out about exchanges - a nasty marketing tactic by stores is usually to close their fitting rooms during a sale period, meaning you can’t try before you buy. Many stores don’t offer refunds for sale items either, meaning many of us have to presume it will fit us if we buy it. Check the returns/ exchanges policy. Some stores may offer refunds/ exchanges or even a gift receipt if you’re unhappy with your purchase

6) Check online - bargains are not just confined to the High Street. Many stores offer discounts online too, with a much wider selection of clothes available, all from the comfort of your own home. Be careful though, delivery charges can often be expensive on sale items, and you’re guaranteed to find a cheaper bargain in-store

7) Keep on looking - you’ll find most stores nowadays have a continuous ‘sale rail’ which is full of bargain buys. New Look, H&M and Primark are just some of the stores I’ve noticed that have a continuous sale. Keep your eye out for any one-day promotions too

Picture courtesy of cardsave. net