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Let's be clear though and I heard a number of people saying it on TV last night too, that prices had fallen 20 or 25% anyway so what use a vat cut...the prices in the shops have NOT fallen by 20 or 25%. Not a bit of it!! Okay Marks & Spencer had a price reduction of 20% last thursday but it was for ONE DAY ONLY. So the £30 shirt in M&S is still £30 now today. I know there are other sales here and there but lets use M&S as a barometer as so many do.
The vat cut and the other measures will give people that extra bit of cash to spend. You might save £20 or whatever on your spend of last week whcih you can then spend to make up your shortfall.
Although we are now in massive debt and its a massive gamble, I heard people on TV last night complaining that it wasnt enough. I think in reality its a lot, its all any government could do.
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