Ed Balls, the shadow Chancellor in the UK, has called for an emergency cut in the VAT to jump-start the economy (via The Telegraph).Balls accused George Osborne of risking “permanent damaging the economy” with his austerity measures, and he said something needed to be done to restore confidence in the British economy.
Balls pointed out the recent poor numbers from the UK and said that it was underperforming compared to its neighbours in the European Union.
“Looking at growth across the EU over the last six months compared to the previous six months, we have gone from the top end of the economic growth league table to fourth from bottom, with only Denmark, Greece and Portugal below us,” Balls said.
Balls’ solution is reducing the VAT back to 17.5% from where it is now at 20%. The VAT was raised by Osborne back in January as part of his measures to cut the deficit.
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