Business Rates and the Recession
Opposition Day — [9th Allotted Day]
5:06 pm
John Healey (Minister of State (Local Government), Department for Communities and Local Government; Wentworth, Labour)
It is not what I say: the Office for National Statistics has said that the VAT reduction has been passed through to consumers in some 70 per cent. of prices. The independent Institute for Fiscal Studies says that the VAT cut has had the same effect as a 1 per cent. interest rate cut. Goldman Sachs has said:
"The VAT cut appears to have had a clear positive impact."