Continuing the theme of hidden changes to rules made by the Inland Revenue (or HME as they are now known, a new title which will make so much difference), another nice little earner which has been introduced quietly has been the practice of sending out what appear to be mysterious VAT demands for business not yet transacted. Apparently HME have been ordered to do this as it is a way of bringing forward future revenue streams and is most likely a device to help the Government plug the hole in the public finances.

Once again, however, it is another example of clasic Treasury short termism. If payments on account are brought forward, what will happen in future? At some point there will be a shortfall. But we have a Government that is probably just planning to survive for another year before the next General Election. Entering that phase looking as good as possible is, of course, so terribly important and any regard for the longer term health of the nation's finances is irrelevant.