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There was no costing for his overall proposals but his aides said the targeted VAT cut for the housing industry would cost between £100m and £500m, adding similar targeted VAT cuts were being tried in France.
Among these measures are tax increases (including rises in IVA, their VAT), cuts to salaries, plans to 'stabilise' the finances of the regions.
They reveal that any gains ministers boast about from the rise in the personal allowance are swamped by higher VAT, cuts to tax credits and child benefit.
If, broadly speaking, German households save and British households spend, VAT cuts might spur economic activity in Reading, but they are unlikely to in Düsseldorf.
Last Monday, Darling used his pre-Budget report to attack the pending recession head-on, with £20bn of VAT cuts and income tax handouts, to be clawed back from voters from 2011, when - fingers crossed - the worst is over.
At a time when consumer demand was collapsing, the government found itself unable to respond with more VAT cuts, pensions bonuses, higher social security and more public projects, in other words a classical Keynesian answer to a slump.
Similar(51)
A VAT cut and a small business tax cut is the best thing to do".
The VAT cut is central to the plan in order to "get consumers spending again".
Why not introduce a targeted VAT cut to 5% on home improvements and repairs to help homeowners and small businesses?
David Kern, chief economist at the British Chambers of Commerce, warned: "The direct benefits of a VAT cut are uncertain.
He argued that Labour's claim that a temporary VAT cut would eventually reduce borrowing "simply doesn't stack up".
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