Has the chancellor overdone the cuts? An announcement of 20% Vat will kick every business
in the country in the teeth and the recovery is too fragile for this drastic fiscal contraction.
Should have stuck to Labour's proposed budget.
Except businesses like this. It is a disgrace Close the VAT loophole MR Cameron.
By basing much of certain operations in the Channel Islands, the Hut Group exploits a loophole in 27-year-old European tax rules that exempts from VAT any imports below £18 in value arriving from outside the EU.
Offering VAT-free prices on goods other than CDs and DVDs would put the Hut Group on a collision course with the Treasury, which has for years regarded the Channel Islands dodge as a headache but a containable problem. Official estimates suggest the trade cost the taxpayer £110m in 2008 and is on the increase.