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“This will do very little to give the UK economy the impulses it needs,” Hermann Simon, from the management consultant Simon-Kucher & Partners, said.
Mr Darling said that the reduction would take place from December 1, for 13 months, and would amount to a saving of ?3.8 billion for consumers this tax year and ?8.6 billion in 2009-10. It was, he said, “the best and fairest approach” for stimulating the economy. “It will make goods and services cheaper and, by encouraging spending, will help stimulate growth.” Mr Darling urged companies to pass on the lower rate as soon as they could...
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