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As we leap into 2011 we are already contending with the VAT increase and what appear to be ever increasing fuel prices. This could make it a fairly tricky and interesting year.
One of the strange things about the 2.5% VAT increase is how this is being played down as only a marginal increase in cost. It’s only two years ago we were told the VAT reduction of 2.5% to 15% was going to be a major boost to the economy and get people spending – and the Government (admittedly of a different hue) claimed it was a success at the end of the 12 months.
For flat dwellers and owners of course it means that your service charges face a hike without anything else happening. Of course in our experience most forget the Government imposed changes when looking through a budget.
It is also impossible to see prices driven down or we will see a whole heap of financial woe for suppliers and contractors.
Undoubtedly it has been a very rough couple of years and we are not finished yet. There will be more strife and anguish waiting as we lurch through the start of the next decade.
So predictions? Another tough year ahead with more social unrest; broadly static residential prices with some pockets rising and some areas seeing falls; no great change in mortgage market as the banks and financial institutions continue to tidy their books; and a bumpy political ride for the coalition as it clings to stay joined and together.
So happy New Year and let’s hope 2012 looks brighter!
06 Jan 2011 10:21:27