the .5% increase in NI is a catastrophe, it will encourage employers to lay people off and it will discourage them from hiring new people. for every person on the average wage, they have added £100 PA. a company employing 1000 people would have increased costs of £100K PA. what planet are they on?

will, grimsby, uk

Does HMRC have a habit of putting the Treasury Secretary's signature on policy documents by mistake? Is this to be another investigation we never here the results of?

"Err yes, two out of three parts are true, but not the rising bit at the end. The TS signature is a clerical error". Yeh right.

Anthony Lester, Brum,

I believe that I have the maths right on this, a purchase of 100 pounds value today costs 117.50 becaouse of the imposition of vat at 17.50%. As a result of these moves it will shortly cost 115 pounds. Britions will now spend ferociously!!
Darling is not REALLY a Chancellor, is he?

John Wood, Uxbridge, UK

Everyone is complaining that a 2.5% decrease in VAT is not gonig to affect anyone. How then can people then claim a 1% increase would be such a terrible thing. You can't have it both ways.

Linky, London,

“He is the do nothing leader of a do nothing party.”
The thing is G Brown that doing nothing would actually be better than what Labour are doing. 15% VAT will not do anything other than waste money which we can ill afford to do. But I do wish the Tories would propose how we get out of this mess

Keith Sloan, Nr Winchester, UK

what? you must be joking? u do know saying this would only make it worst for ur party right? if u wanna take any measures, pls take a brave step or take none at all...a 2.5% reduction is nthg i tell you, take 7.5% and maybe you'll see the difference..otherwise just don't do it..such a disappointment

jamie, Brighton,

When will the moaners learn that money for services and major projects - transport for example - has to come from somewhere. If so, they shouldn't then complain about the high price of Britain's train tickets and lack of good hospitals. 19 per cent VAT would still be average for the EU.

Barrie Redfern, Zdole, Slovenia

The interesting part of the proposals is that not only will prices in the whole not be effected by the drop in VAT as most retailer and other benefactors will just keep the reduction. In a couple of years we will see in an effect an inflationanary rise is prices by 3.5% as VAT is re-imposed.

martin, winchester,

The Conservative Australian government managed to repay all debt in the good times and now runs a budget surplus which will be used to stave off a recession. This is an example othe UK govt should've learnt from. Too late now i guess.

tom, London, UK

Labour policy is surely shown now to be geared to the political cycle, ie an election by, at latest, 2010, rather than the economic cycle. Did anyone really believe Brown had any other interest than re-election?

Cyril, Truro, UK

Funny... Always the have nots are happy for the rich to take their money and leave. Do they not know who pays their benefits, who pays for their treatment on the NHS, who gives them jobs, etc. If they don't once Gordon has taxed everyone with a bit of money out the country, they soon will!

Anton, Fleet,

I hope that all the rich people leave the country. See if I care, I never liked them anyway.... Horrible people with more money than me...

Oh hang on, how are we going to pay for all the stuff that their taxes supported now? Oh please come back, please oh please.

Hugh, London,

The cabinet is doing panto this Christmas, “Life On Mars”



By taking us back to the 1970’s economy

Masaud, Manchester,

God forbid, the Tories using the truth to challenge the Government.

To Gordon and Alistair:

Why bother with the truth if it doesn't support your case?

Alan Kelly, Manchester, UK

Could the Times perhapsconsider simplifying and varying its headlines?

Instead of this constant "Government denies...." How about, "The Government lies again....."?

Robert, Hull, UK

Having told us they were going to be upfront about Tax Rises, yet again Labour is being untruthful. The IFS also confirmed the Conservative claim that those earning £20,000 and above would be worse off, contradicting the government statement that it would only be people earning above £40,000.

james, swindon, uk

Surely it is right that the Govt consider all options and a raisxe in VAT shouldnn't be off the table. As it happens they have decided to tax the rich more which is very sensible. I supported the Tories but no more!

Craig, Glenorthes,

Old Labour never went away. It's called Tax and Spend. Or rather Borrow and Tax and Spend.

Paul Freeman, London, England

The world is now not such a friendly place to tout your wares. The very wealthy are more than welcome to leave this country. Just like the bankers being told not to claim bonuses are welcome to go and find other highly paid jobs in the rest of the worlds sound and well founded banking sectors. Sneer

Ian, Manchester,

Barquentine - so no matter how hard someone works, or where in the world that person wants to reside, you reckon the greedy govt should FORCE them to keep paying?! Are you for real? That's THEFT. Simple.

bertie, London,

The only reason for the 45% is Labour spin. Its irrelevant in tax terms but it gives the immpression that only the rich will pay which whilst untrue still makes many voters feel better. Also if their opponents talk about it it makes them look unsympathetic to the ordinary voter

Bill G, Slough, UK

If the rich threaten to live elsewhere to avoid tax, then do as the Americans do: make them liable to tax on their income wherever they live. Simple.

Barquentine, Solihull,

It isn't going to happen, as far as Labour is concernrned th next election is unwinnable for them, the public now know them for what they are.
There are now several respectable alternatives to voting either Labour or Conservative never mind Liberal,enough is enough!

Clive Burghard, Lancing, ENGLAND