Rishi Sunak is ready to slash VAT and pump billions into the economy as the government prepares to ease social-distancing rules.
The chancellor has ordered officials in the Treasury and HMRC to prepare options to reduce the sales tax, including a cut in the headline rate, and zero rating more products for a fixed period.
In private briefings last week, Treasury officials pointed out that Sunak could lower VAT and business rates at the stroke of a pen when he makes a planned speech on the economy in early July.
There is a precedent for cutting VAT in a crisis. Alistair Darling, the then Labour chancellor, reduced it from 17.5% to 15% for 13 months after the 2008 crash. It has been at 20% since
