The only thing it's done for me is left me with more 1 and 2p's in my wallet.
I'm guessing it's helped businesses a lot more than individuals. e.g. could have persuaded a firm to go with a big project (maybe IT), 2.5% might actually be a fair whack.
Nobody is looking at the big picture. Firstly, yes the consumers see a small difference to their pockets, so hopefully they will spend more of that.
More importantly, businesses see a profit, especially small businesses who can't and don't change the prices they charge to consumers. What does that mean? They don't have to let some staff go. They can absorb more losses to sales. They see more money to try and grow, and don't forget that the government will be taxing this extra profit so will be regaining 33% of it anyway. And of course all of these will feed through the multiplier effect to create a larger benefit than just the 2.5%.
People here are too easy to jump on the bandwagon without thinking about what they are saying.
I'm not saying is a recession buster, but it definitely had a positive effect which people on here do not realize.
It's a 2.1277% cut in the overall price -IF the price cut was passed down to the consumer. And given the celebratory posters in many shops about how kind and generous they were to pass the full VAT cut saving down to consumers (as if it wouldn't just be expected that they would all do that anyway), it's not unreasonable to suppose that some shops didn't pass the saving down