Bank of England may give another £50bn boost

350 billion !! no wonder we broke -i know lets start another war as a diversion

Claw back the cash raped from the nation by the serpents who manage the banking system to their own ends.

Good evening,
I suggested the other week that a possibly better way to spend the £50 billion would be to put all fuel at zero % VAT.
I understand that the government rakes in about £15 billion per year in VAT from fuel so, on this basis, the £50 billion would allow for fuel prices to be reduced by the VAT amount for the next 3 years + (sustainable to say the least).
This would have the effect of reducing unleaded (currently around £1.309 a litre here in South Yorkshire) to around £1.09. Diesel would fall from its current average of £1.369 to around £1.14 per litre.
Consequently, private consumers would have more cash in their pockets to spend and thereby generate growth. Furthermore, the costs of goods in the shps would be lower due to lower transport costs which would result in lower inflation figures, again benefitting both private and commecial customers. Finally, the reduced costs of diesel would allow give our haulage companies and public transport providers a much needed reduction in operating costs which could either be passed on to the public or, alternatively, be inveted into creating jobs.
This way, everyone would benefit and the total cost to the treasury would be exactly the same. Also, as companies became more profitable, so they would pay higher corporation tax bills whilst more people in work from the jobs created would also equate to higher tax revenues and lower benefits payments. The government could use these savings to either reinvest in the NHS, education, infrastructure etc. (more jobs into the cycle again) or to reduce the deficit (long term aim of the government and beneficial for the country in the years to come).
Overall, I can't see why it would not work other than that the greedy banks would not have the funds to feather their own nests with and stifle any attempts by businesses to reinvest and help the stagnant economy to grow.
However, perhaps there are experts out there who can see a pitfall in my plan other than this? What do you all think?
Best wishes,
Nick

Accepting the fact that the banks made a huge mess of the world finances a few years back. Why is it since this government has been in power, we still have banks fiddling and paying out huge bonus's? Bob Diamond apparently has received £120 million in bonus's and salaries since 2005. This year he is going to get £18 million for not knowing that 14 people were fiddling interest rates for the benefit of his bank. What were his advisers doing and how much have they been paid? A token jesture for him to have to leave and they stay in post ready to fiddle again. Like Natwest -RBS saying a young computer operator in India messed up the computers by pressing the wrong button. Why can't people be more honest and say who did it and sack the real people at fault.

comon keep wasting it,giving it to the vultures leeching off us

Trouble is, if they keep giving it to the banks to feed into the economy its a waste of time. Since the last time the Government injected cash Mortgages and Loans have actually dropped, so wheres all the money going??

Amazing how we can print so much money £375 billion.
Why not just print a trillion pay everyone off, get rid of the deficit, save £80 billion a year in interest.
They would be no need to keep borrowing £15 to £20 billion a month to pay the bills.
Then do the just thing CLOSE the tax loopholes that will bring in around £50-£100 billion a year.
Then we can start reducing taxes V.A.T etc and we might see some real growth.

Mad - All this does is make everything more expensive as the money in our pockets will be worth less.What a shambles. No doubt this is what Osborne has told King he must do. What happened to the Bank of England being independent of the Government ?????????????????????????

Surely this is no worse than the Banks keeping interest rate artificially high e.g the Bank of England is keeping interest rates artificially low that takes money away from savers and makes our money worth less . As normal one rule for the establishment/government and another for the public/private sector

Great Idea this should boost the bankers bonuses back to pre inflation rates

So we'll give this to people to buy government bonds, which will keep interest rates down. Wasn't I reading something about banks fixing interbank lending rates, being fined and there being demands for heads to roll? So in this case, the prime minister and chancellor will be demanding the head of the bank of England, the prime minister and the chancellor should all resign for conspiring to fix rates.