Stimulating the economy

The Chancellor has announced his plans for breathing life into the economy, a 2.5% drop in Value Added Tax, but paid for by increases in National Insurance contributions from 2011.

I can’t imagine many retailers are going to drop prices from £9.99 to £9.78, for example, they’ll just pocket the difference.  Meanwhile, I’ll still have to pay the additional NI contributions, and further tax increases on alcohol, tobacco and petrol.

Who is this supposed to be encouraging to ‘go out and spend?’