Rishi Sunak is ready to slash the VAT and pump billions into the economy that the government is preparing to facilitate the social-distancing with respect to the rules.
The chancellor has ordered Treasury officials and the tax and customs administration to prepare options to reduce the sales tax, including a reduction in the overall rate, and zero rate more products during a specified period.
In information sessions last week, Treasury officials pointed out that Sunak could the reduction in VAT and business rates to the tip of a pen, when he makes a planned speech on the economy at the beginning of July.
There is a precedent for the cutting of the VAT in case of a crisis. Alistair Darling, the chancellor of the Work, reduced from 17.5% to 15% for 13 months after the crash of 2008. It has been 20% since