Tuesday, 6 January 2009

One in ten shops to close by February as experts warn many high streets will become ghost towns

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15 comments:

Justintime said...

optimistic speaking, i don't think the situation is that bad,200 shops closed in the day that doesn't mean that will happen everyday in the rest of 2009-the shops have been closed because they are less profitable-the firm can concentrate their capital to support the exisiting outlets.

7 January 2009 at 12:28
Anonymous said...

I agree that the slight amount cut in VAT won't restore consumers' confidence. As it is measured in percentage, the decrease in price of some essential items like food, which is already relatively cheaper, can be negligible. A 2.5% cut may only be felt on expensive items or luxury goods. That is to say, in order to save money consumers have to spend money first. I think cutting tax would have been more practical. -- Luna

7 January 2009 at 15:31
Aaron 施 said...

cutting vat does not make any sense what else can the government do? it is a question
PS we benefit from it a lot.

7 January 2009 at 19:00
Anonymous said...

As the article pointed out that the VAT cut only contribute slightly for the price change is minor. But What else can be sacrificed? It is a dilemma for the government, the consumer confidence needs to be errupted which can be solved by cutting down the income rate while during the same time the government has a bill to pay back.I am lucky for I am not darling.

7 January 2009 at 21:11
chaoya zhuang said...

It seems that cutting VAT doesn't work, the consumer comfidence is still low, the UK is in the recession, unemployment is going up, receive money directly is more easy to boost the comfidence,

7 January 2009 at 21:40
Anonymous said...

Shops are going to close in february because consumers are still not confident enough even though there was a cut in VAT. Elvis Vicente

7 January 2009 at 21:53
qiongke said...

government should build the consumer confidence not only cut the vat,they have to slow down the rate of unemployment.or the policy can not be as effective as the gov. expected.

7 January 2009 at 22:20
Nicky said...

The VAT cut hasnt helped the economy at all.It is partly caused that people have in their heads that its economy crise so they are scared to spend any money so they rather save them.Secondly,the VAT cut was on clothes,machinery,cars and so on but not on the food.Now,in the crise,people arent going to buy an expensive products such as car but they try to buy only whats nessessary-food.Therefore,the shops are losing their money and not make enough profit so they have to shut down.

7 January 2009 at 22:38
Anonymous said...

The VAT seem to have no effect on the attempt to boost spending on the high street. There only been a slient drop in price so there will still be shop closing down.

7 January 2009 at 23:15
Kamit Chingis said...

So now goerment hove to develop new way solving of problem?But how?
I support Qiongke becaus that whould make people spend money.

8 January 2009 at 08:47
Fabio xu said...

It is a process that the government have to go through of.At the same time ,I think the government should continue to stimulate the markets.
The VAT decrease had not boosted demand.

8 January 2009 at 09:30
victor yu said...

the vat cut will never build the consumer confidence. the most important thing is to let people take money out of their wallet.

8 January 2009 at 10:03
Anonymous said...

This could be very bad because balance of trade will drop towards deficit

8 January 2009 at 12:32
Justintime said...

In fact,actually,VAT cut can work if the VAT is O.

8 January 2009 at 18:23
Kamit Chingis said...

but that is something that goverment willnot do
i mean VAT=0

9 January 2009 at 08:42

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