More and more firms want VAT cut to help businesses recover

Ben Southwood
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TWO thirds of directors and senior managers at UK firms said the government should slash VAT in 2013, according to a survey out this morning.

Sixty-seven per cent of senior managers surveyed by Interim Partners called on the government to cut VAT back down to size in the coming year, up on last year’s slimmer majority of 56 per cent who backed slashing the consumption tax.

Managers also called for a steady monetary policy, Interim Partners said, with a large majority – 88 per cent – opposing increased interest rates and more than half – 57 per cent – coming out against more quantitative easing (QE).

Both majorities had increased since managers were asked the same questions last year, as the UK has continued to find itself unable to fight its way out of the clutches of economic slump.

“The support for continued low interest rates has increased as the economy has continued to struggle,” said Interim Partners managing director Doug Baird.

“However, there appears to be growing concern about the impact of QE – many senior managers do not see QE as a long-term solution to the UK economy’s problems.” He said they thought QE had come up against diminishing returns.