Govt studying these weekend ideas carefully... suggests VAT cut if corona econ hit forecast to be well over 0.2% pencilled in by OECD. in past Chancellors gone for VAT cut because “timely, temporary & targeted”... if OECD right BoE cuts might be enough resolutionfoundation.org/publications/a…
The key issue is supply chain finance, obviously, and working capital through a quarantine period, and existing flexibility for banking system to support economy. This is Bank of England as well as Treasury issue.
Back on VAT - this is an interesting collection of cuts made to collection and some VAT rates around world as a response to coronavirus, cuts to main rate though, not typical: avalara.com/vatlive/en/vat…
