BBC News interviewing MOP re: VAT cut

[stuthemong]

If you hate pedantry hit the back button. This post will probably blow up in my face like my last woeful toe-dip in the P&P, but try again I will.

On BBC1 news just now, they interviewed 3 women in a shopping centre, asking whether they thought the 2.5% VAT cut would encourage them to spend more.

"£2.50 in £100. Not a lot is it, won't make a difference to my spending. I understand percentages see, most people don't, but I work in a bank". Not a word of a lie, that is verbatim.



We may have just worked out how the credit crunch / sub-prime issues came into effect. What hope do the general public have in understanding basic maths when the BBC broadcast this? Answers on the back of a postcard.......

[dfen5]

17.5% Vat on £100 is £17.50
15% VAT on £100 is £15

Difference £2.50. Not so?

[DucatiGary]

stu the mong in living up to his name shocker

[stuthemong]

Oh, maybe im being a moron

Should it not be £2.50 on £117.50, or about £2.12 on £100?



Gary!

Edited by stuthemong on Monday 24th November 22:38

[DucatiGary]

you may well be right but its much more fun mocking you.

sorry

[stuthemong]

My name is so apt, I love it.

It's damn lucky I didn't call myself Stutheinteresting or something, that would just be lying!

[ATG]

dfen5 said:

17.5% Vat on £100 is £17.50
15% VAT on £100 is £15

Difference £2.50. Not so?

Yes it's £2.50 ... but it's a £2.50 reduction on something that costs £117.50, not £100.

[dilbert]

dfen5 said:

17.5% Vat on £100 is £17.50
15% VAT on £100 is £15

Difference £2.50. Not so?

That's not what she said though.

She said the VAT *in* £100 pounds. FWIW, it's £14.89 @ 17.5% and £13.04 @ 15% so the difference is £1.85.

Edited by dilbert on Monday 24th November 22:47

[dfen5]

ATG said:

dfen5 said:

17.5% Vat on £100 is £17.50
15% VAT on £100 is £15

Difference £2.50. Not so?

Yes it's £2.50 ... but it's a £2.50 reduction on something that costs £117.50, not £100.

Yes, it's £2.50 off something that costs £117.5 including VAT.

[Andy Zarse]

DucatiGary said:

stu the mong in living up to his name shocker

DucatiGary living up to his reputation as possibly the dimmest person on PH...

No dessent from me Stu, I agree wholeheartedly. I saw it too, and you're right, most of the great British public with a good GCSE in Maths due to "rising standards in schools" haven't the faintest idea what a percentage is or represents. A nation of dimwits has borrowed it's way into an unpresidented level of debt.

Edited by Andy Zarse on Monday 24th November 22:50

[magic torch]

ATG said:

dfen5 said:

17.5% Vat on £100 is £17.50
15% VAT on £100 is £15

Difference £2.50. Not so?

Yes it's £2.50 ... but it's a £2.50 reduction on something that costs £117.50, not £100.

Isn't it a £2.50 reduction on the VAT on something that costs £100?

Item costs £100. VAT will be £15.00 instead of £17.50.

[dfen5]

Lol @ this thread

[Zod]

Stu is right. If the sticker price is £100, then the price net of VAT @ 17.5% is £85.11 and net of VAT @ 15% is £86.96, a difference of £1.85.

[stuthemong]

... and £1.85 is the difference of Ex VAT prices under a 15% VAT regime, which is £1.85*1.15=£2.12 which is what you'd save on your VAT'd sale. phew.

Nonetheless I just found it hilarious her ascertion that, "People dont understand percentages, I do, I work in a bank".

I probably need to get out more. Almost certainly. I hope EricMC would raise a wry smile to this thread anyway.

[Ian1903]

The bank employee is right, nowhere does he/she mention buying something inc or exc VAT they are asked if a 2.5% cut will get them spending again and then rightly say £2.50 in £100 pounds. Not something costing £100 or something costing £117.50. Just point out that a 2.5% saving isn't very much. Which it isn't.. really.

[Ian_S]

video here:

http://uk.youtube.com/watch?v=y3U3R3b1dOg

[Diderot]

Andy Zarse said:

A nation of dimwits has borrowed it's way into an unpresidented level of debt.

Edited by Andy Zarse on Monday 24th November 22:50

Dear oh dear.

[Famous Graham]

Oh good grief, we're talking about the general public here. It is not unreasonable to assume that a publicised 2.5% drop DOES equal 2.5% in real terms.

If you're going to blame anyone, blame the government and media for not suffixing "by the way, this REALLY means..." etc.

And, in fact, the perception actually achieves MORE than the real thing, given folk believe they are getting more of a discount than they really are.

Edited by Famous Graham on Tuesday 25th November 01:32

[s3fella]

She's right though, it will make fapp all difference. Nice to see they are puttin fuel duty up by 4p so how will this be offset vs the VAT reduction on fuel?

I reckon we will be paying 2p a lite approx more for petrol etc.

Nu Labia scumbuckets I am just so looking forward to voting these useless feckless wonders out of office. I dont care whether the next lt are any beter or not, so long as we get this unelected fool out on his arze.

[Tunku]

Andy Zarse said:

DucatiGary said:

stu the mong in living up to his name shocker

DucatiGary living up to his reputation as possibly the dimmest person on PH...

No dessent from me Stu, I agree wholeheartedly. I saw it too, and you're right, most of the great British public with a good GCSE in Maths due to "rising standards in schools" haven't the faintest idea what a percentage is or represents. A nation of dimwits has borrowed it's way into an unpresidented level of debt.

Edited by Andy Zarse on Monday 24th November 22:50

Makes one wish the s had taken up English too.