Hornby criticise Government's hike in NIC

I notice that one of the companies critical of the Government's hike in National Insurance contributions is Hornby plc - a company which abandoned the UK for the vast majority of its production some years ago, and now employs a relatively small number of UK workers.

Sure the rise will have an impact on them, but it will be marginal, and I'm certain that any increase in VAT - likely if the Conservatives were to win the general election - would have a far more significant effect on their sales.

As a retailer of Hornby products I know that the public are becoming ever more unfortable with the spiralling increase in the retail price of many of their models, to the point that sales are starting to fall signifiantly in my shop compared with those of other manufacturers. An increase in VAT could be the straw to break the camel's back.

John.

Reply to
John Turner
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I have a sneaking suspicion it=92s simply down to publicity !

I fear the main political parties / banks don=92t really give =91two hoots=92 about small businesses=92s.

Whoever brings in a non multiple tax system would get my vote.

The problem is that, as said on this very group, if VAT was abolished or reduced would the reduction get passed on ?

Chris

Reply to
Dragon Heart

In article , John Turner writes

From the country's point of view, VAT is a more sensible tax than employers' NIC. The former taxes all (well, most) consumption regardless of where the goods are made or services performed - i.e. home grown and imports. The latter directly taxes UK employment, thus making it more economical to export jobs to lower cost countries, but gets nothing whatever from imported goods or services.

The only trouble with VAT is that the rules are set out by the idiots savant in Brussels, who also get a cut of the receipts to spend on their monstrous useless bureaucracy.

The question you have to ask yourself is, is it worse for Hornby to go broke, or for UK plc to go broke? (I know which I prefer, though I have to declare a marked lack of direct interest here, as N gauge and O gauge are my areas of activity.)

David

Reply to
David Littlewood

It will happen whoever wins. It's the only sensible way of raising the amount of tax neccessary to pay off our debts. A massive hike in income tax hits the less well off even harder (no VAT on essentials such as food and kids clothing). Personally I favour tax on consumption. The trouble is you can be damn sure they won't reduce any of the other taxes!

MBQ

Reply to
manatbandq

No doubt Hornby are going to blame their next price increase on the NI hike.

Fred X

Reply to
Fred X

It would also make sense to impose a special tax on the banks who are now once again paying themselves far too much.

wolf k.

Reply to
Wolf K

"Fred X" wrote

If they don't get their pricing act together there won't be another price increase.

All I can say is that I remain convinced that a hike in VAT will do nothing to encourage demand, and will have exactly the opposite effect. It will be the tax hike to far, and the one that will fuel that double dip recession.

John.

Reply to
John Turner

Well I don't think that a VAT hike has anything to do with increasing demand???

Fred X

Reply to
Fred X

"Fred X" wrote

Did I say it was?

My comment was simply that the hike in NIC was a better option than increasing VAT.

John.

Reply to
John Turner

Well you said "All I can say is that I remain convinced that a hike in VAT will do nothing to encourage demand" which implies that you think that some people think it will increase demand.

Fred X

Reply to
Fred X

"Fred X" wrote

It wasn't what I meant to imply. All I meant was that at a time when the country is in recession and sales are already weak, the last thing we need is an additional cost on sales. That will reduce demand and make it more difficult for the country to escape the recession.

John.

Reply to
John Turner

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