While banking system lurches, politicians bicker over VAT in Government gift shop

Honestly, I despair. The day before the UK Government unveils a second banking rescue package worth hundreds of billions of pounds and RBS (once one of the world’s largest banks) falls 67% to become a penny stock, the Conservative party apparatus circulates a press release concerning… Value Added Tax in a Government gift shop.

On the 18th of January, while the grown-ups in the UK worried about the banking sector, Francis Maude of the Conservatives strode out via the press release to declare:

“The fact that Gordon Brown isn’t passing on the VAT cut in his own gift shop or in Downing Street’s bunker illustrates what an expensive failure his policy has become, and shows how it’s failing to tackle Labour’s recession. It is the height of hypocrisy for Gordon Brown to be lecturing firms to be cutting prices when he hasn’t bothered himself.”

In case you think this sounds like an Onion article, here’s another excerpt which you’ll see is much more serious:

The Government’s secret gift shop: Parliamentary Questions by Conservatives have revealed that a secret gift shop operates out of Downing Street. It is only accessible to Downing Street staff, not the general public (“a closed shop” in more ways than one). Gordon Brown has consistently attempted to evade questions about the shop, such as its suppliers and annual turnover.

Thank goodness for this important work, when there’s nothing else for politicians to be concerned about such as a global recession. At least the Government shop isn’t selling teddy bears or fridge magnets…

Gordon Brown’s aprons, oven gloves, teddies and wallets: The Government has finally admitted this week that Gordon Brown’s shop sells branded goods including aprons, tea towels, oven gloves, coasters, fridge magnets, candles, photo frames, teddy bears, a ‘No 10 door model’ and even a Downing Street wallet. All these items attract VAT.

Rats, I spoke too soon!

If you still think I’m making this up, you can read the story in The Scotsman.

Sure the opposition has come out with some appropriate statements today, but why are they wasting any bandwidth on tittle tattle while the UK economy faces a cardiac arrest?

Incidentally, this isn’t a party political point – they’re all as bad as each other. In particular Prime Minister Gordon Brown is blaming everyone but himself. His recent bailing out of the reckless home buyers who got us into this mess is typical of his scattergun approach to a crisis he helped create.