Budget Implications#1

Proud possessor of the poisoned chalice, George Osborne, has increased the VAT rate from 17.5% to 20% in today's Budget. As a sop to please the masses, he's resisted the temptation to slap further increases on "essential food items" such as beer and fags.

The VAT increase will of course also apply to fertiliser, but it doesn't come into effect until January 4th 2011. Cue the rush of fertiliser manufacturer's promotional literature being sped to the printers as I type: "we've only got one load left honest, buy now to avoid the VAT increase, the Indians/Chinese will take it if you don't want it, etc."