Whoomph!

The days of the double whammy might soon be replaced by a single smack across the chops depending on the reliability of reports that an emergency package is being “actively considered” by Tory strategists to hike VAT up to 20% within weeks of an election victory.

The party’s official line is that “there no plans for a VAT increase and there have been no discussions about it.” However the Sunday Telegraph says different and it depends on your own grasp of conspiracy theory as to how much this might be the early stages of a softening up process.

Budgetary plans, especially those proposed by oppositions are remorselessly dissected by economic analysts and then the media and then by other economic analysts, so the assumption has to be that Central Office has done sufficient focus group stuff beforehand. It could be the case - especially as news also ‘emerges’ that potential Labour criticism can be countered with the revelations that the Blair government was looking to do pretty much the same thing back in 2001 when things were far less bleak.