CLEAN: Britain raises sale tax in government move to slash deficit

The video discusses the impact of fiscal policies on the UK's economic growth, highlighting the effects of tax increases and spending cuts. It emphasizes the adverse impact on the poorest in society and analyzes the temporary effects of the VAT increase. The discussion also covers the UK's alignment with European VAT rates.

What is the expected impact of the fiscal policies on the UK's economic growth?

• No impact

• Weak growth

• Moderate growth

• Significant growth

Which group is most affected by the government's fiscal consolidation measures?

• Middle class

• Business owners

• Wealthy individuals

• Poorest members of society

How does the VAT increase affect inflation in the UK?

• It permanently increases inflation

• It temporarily increases inflation

• It has no effect on inflation

• It decreases inflation immediately

What is the expected trend for inflation in the UK by 2012?

• Stay the same

• Increase further

• Decrease sharply

• Remain high

How does the VAT increase align the UK with the European Union?

• It aligns the UK with the EU average

• It makes the UK have the highest VAT rate

• It makes the UK have the lowest VAT rate

• It has no effect on alignment