Thatcher raised VAT (to 15%) to fund the Falklands, why wasnt it lowered afterwards?
Discuss issues related to the politics of the UK, such as the actions of any MP, any current or potential law, or any other factor affecting the British political system.
| Announcements | Posted on | |
|---|---|---|
| TSR launches Learn Together! - Our new subscription to help improve your learning | 16-05-2013 | |
-
- Reputation:
- Thread Starter
- Banned
- Posts: 104
Thatcher raised VAT (to 15%) to fund the Falklands, why wasnt it lowered afterwards?This is something I've been wondering about. V.A.T. was raised by Thatcher in order to fund the Falklands war (to 15%, correct me if I'm wrong)...so why wasn't it lowered afterwards? Why didn't it go back to the original rate once the war was over?
Last edited by Really_Gonna_Rock_; 12-07-2012 at 00:47. -
- Reputation:
- Vengeful, Imperial Overlord of The Student Room
- Posts: 4,830
Re: Thatcher raised VAT to 17.5% to fund the Falklands, why wasnt it lowered afterwarNo. You've made that up. VAT was 15% until the early 90s.(Original post by Really_Gonna_Rock_)
This is something I've been wondering about. V.A.T. was raised by Thatcher in order to fund the Falklands war (to 17.5%, correct me if I'm wrong)...so why wasn't it lowered afterwards? Why didn't it go back to the original rate once the war was over? -
- Reputation:
- Thread Starter
- Banned
- Posts: 104
Re: Thatcher raised VAT to 17.5% to fund the Falklands, why wasnt it lowered afterwarOh let me correct the title then....(Original post by Clip)
No. You've made that up. VAT was 15% until the early 90s. -
- Reputation:
- Vengeful, Imperial Overlord of The Student Room
- Posts: 4,830
Re: Thatcher raised VAT to 17.5% to fund the Falklands, why wasnt it lowered afterwarTo what? The thread is completely pointless now.(Original post by Really_Gonna_Rock_)
Oh let me correct the title then.... -
- Reputation:
- Thread Starter
- Banned
- Posts: 104
Re: Thatcher raised VAT to 17.5% to fund the Falklands, why wasnt it lowered afterwarHow is it pointless? She DID raise VAT to fund the Falklands war....just to 15% and not 17.5%. So my question remains, why didn't she lower it back down afterwards?(Original post by Clip)
To what? The thread is completely pointless now.
Shockingly, VAT is now a whooping 20% these days. -
- Reputation:
- Vengeful, Imperial Overlord of The Student Room
- Posts: 4,830
Re: Thatcher raised VAT (to 15%) to fund the Falklands, why wasnt it lowered afterwarWhat is wrong with you?
Mrs. Thatcher didn't raise VAT at all. It was 15% throughout her premiership. VAT was not raised to fund the Falklands War.
You're making stuff up and then changing it to other stuff you've made up. -
- Reputation:
- Vengeful, Imperial Overlord of The Student Room
- Posts: 4,830
Re: Thatcher raised VAT (to 15%) to fund the Falklands, why wasnt it lowered afterwarThat's not strictly true, either. Before 1979, there were different VAT rates for petrol and for everything else (except the things that are still 5% or zero rated like childrens clothes and gas). In 1979, the petrol rate came down and the rate for everything else went up.(Original post by Will Lucky)
VAT was raised to 15% in 1979, 3 years before the Falklands conflict. -
- Reputation:
- TSR Legend
Re: Thatcher raised VAT (to 15%) to fund the Falklands, why wasnt it lowered afterwarhttp://www.bbc.co.uk/news/special/po...d1979_92.shtml(Original post by Prepare-Yourself)
lol can someone get some statistics on VAT please? -
- Reputation:
- TSR Demigod
- Posts: 7,480
Re: Thatcher raised VAT (to 15%) to fund the Falklands, why wasnt it lowered afterwarah, conspiracy theory... She knew the invasion was coming 3 years out(Original post by Will Lucky)
VAT was raised to 15% in 1979, 3 years before the Falklands conflict.
Irl the way governments pay for wars is to throw the expense onto the national debt and worry about it later. VAT Went up to pay the unemployment benefit of all the people who were about to be put out of work by the thatcher economic miracle. -
- Reputation:
- Peer Of The TSR Realm
- Location: Manchester
- Posts: 1,609
Re: Thatcher raised VAT (to 15%) to fund the Falklands, why wasnt it lowered afterwarI thought there still was a two track VAT rate a 20% and 5% rate.(Original post by Clip)
That's not strictly true, either. Before 1979, there were different VAT rates for petrol and for everything else (except the things that are still 5% or zero rated like childrens clothes and gas). In 1979, the petrol rate came down and the rate for everything else went up. -
- Reputation:
- TSR Idol
- Location: This sceptred isle
- Posts: 9,642
Re: Thatcher raised VAT (to 15%) to fund the Falklands, why wasnt it lowered afterwarStandard VAT rate was 8% when Mrs Thatcher came in to power in 1979.
In 1979 it was put up to 15%, nothing to do with the Falklands. In 1991 it was raised again to 17.5%. In 2009 it was cut back to 15% for a year as a spending stimulus, but then in 2010 when the Coalition came into power it was put up to 20%. -
- Reputation:
- Vengeful, Imperial Overlord of The Student Room
- Location: London
Re: Thatcher raised VAT (to 15%) to fund the Falklands, why wasnt it lowered afterwarPretty sure income tax was supposed to be temporary and was brought in to fund the Boer war.
Whenever a politician tells you that a new tax is temporary, they're lying. -
- Reputation:
- Peer Of The TSR Realm
- Location: Manchester
- Posts: 1,609
Re: Thatcher raised VAT (to 15%) to fund the Falklands, why wasnt it lowered afterwarActually it was the Napoleonic Wars, sort of was temporary but returned quickly after it was removed.(Original post by CandyFlipper)
Pretty sure income tax was supposed to be temporary and was brought in to fund the Boer war.
Whenever a politician tells you that a new tax is temporary, they're lying. -
- Reputation:
- Adored and Respected Member
- Location: The Land of Angst :P
- Posts: 470
Re: Thatcher raised VAT (to 15%) to fund the Falklands, why wasnt it lowered afterwarI think because people notice when taxes are raised, but rarely notice when they are lowered - or, at least, people go up in arms against tax raises but are not nearly as appreciative when taxes are lowered.(Original post by Really_Gonna_Rock_)
This is something I've been wondering about. V.A.T. was raised by Thatcher in order to fund the Falklands war (to 15%, correct me if I'm wrong)...so why wasn't it lowered afterwards? Why didn't it go back to the original rate once the war was over?
Therefore I presume that with the Falklands having hugely damaged infrastructure the UK probably still needed the money anyway, and it was better to keep the tax rate than to lower it and then have to raise it again - people would notice that and that would increase discontent.
