What its estimate is of the weekly impact on single person and family households of the reduction in VAT announced by the Chancellor of the…

The temporary cut in the standard rate of VAT from 17.5% to 15% announced by the Chancellor of the Exchequer on the 24 November is estimated to increase the average Scottish household''s income by approximately £4 a week in 2009-10.
Table 1 summarises the estimated average impact of the VAT cut on the weekly income of different household types in Scotland during 2009-10. The results presented assume that the cut in VAT is passed on in full to consumers; if this does not occur, the average impact on households will be less.
The analysis was conducted using the Expenditure and Food Survey which does not provide data at the sub-Scotland level.
Table 1 “ Estimated Average Weekly Change in Net Income by Family Type (2009-10)
Family Type
| Average Weekly Change
(£)

Single Non-Pensioner
| £1.90

Married w/o Children
| £5.30

Married with Children
| £6.10

One-Parent Families
| £3.00

Single Pensioners
| £1.40

Married Pensioners
| £3.30

Households comprising Multiple Taxpayers
| £5.40

Note: Results have been rounded to the nearest 10p.