HIGHER PRICES = MORE JOBS?

How in heaven's name does raising VAT from 17.5 to 20% boost jobs? And if income tax was raised in the right places, e.g. Super-bonuses over a set limit, say £50,000 and raising the top rate of tax to 75& for those earning £200,000 and over we wouldn't need the VAT rise that hits us all.

VAT was introduces to replace the several rates of purchase tax and was designed to be a 'luxury tax' on goods deemed not essential, such as fur coats and Rolls Royce cars so that those that could afford such goods would contribute more through their purchases. Hard to believe when we see it on everyday clothes we all have to buy.

This rise will hit spending and therefore jobs. High wages and low prices are not diametrical opposites. This is a good, efficient expanding economy. The problem is successive governments have concentrated on holding down wages while prices have been left to the whims of their wealthy friends.

And why isn't VAT charged on newspapers and magazines? I haven't bought either of these items for years and get on quite nicely. Could it be the government don't want to upset their friend's in Fleet Street and attract bad press?

It's time VAT was applied strictly to luxury goods, such as the ones I mention above. Then they can charge 90% as far as I am concerned.

CUP HANDS, THERE GOES CADBURY’S II

Straight away, we hear 'job cuts inevitable after Kraft takeover'. Gordon Brown said the government was "determined" to ensure that Cadbury jobs were secure.

"We are determined that the levels of investment that take place in Cadbury in the United Kingdom are maintained and we are determined that, at a time when people are worried about their jobs, that jobs in Cadbury can be secure," he said.

Peter Mandelson added his two penneth saying Kraft's chairman and chief executive Irene Rosenfeld had already written to him to assure him of Kraft's "respect for Cadbury's heritage and employees".

He said he had now invited Ms Rosenfeld for talks on the details of Kraft's plans, which he said he would then immediately disclose to the Cadbury workforce.

Well he should have been discussing that before the takeover went ahead. Or was he fooled by the pre-emptive letter of assurance mentioned above?

I still say five years maximum before Cadbury's UK and production is moved abroad. Of course there will be financial reasons. Like wages are lower in South America or Eastern Europe.

A poor excuse for Cadbury employees and British industry.

CUP HANDS, THERE GOES CADBURY'S

Kraft has bought Cadbury's. Another British company owned by foreigners. I predict within 5 years Cadbury's in Birmingham will be gone and Cadbury's chocolate production will be moved abroad. They'll keep the name and they hope to keep the customer base and good will. If they move production abroad, I for one will not buy Cadbury's again.