CITY AND SUBURBAN
A feeding frenzy for paying the gas bill — it's just what the Chancellor wants
CHRISTOPHER FILDES
Lke fish, markets have feeding fren- zies, sudden rushes of money to the head, but never until now a frenzied rush to pay the gas bill early. This craze is expected to suck in a billion pounds. The idea is to pay in advance and avoid VAT on fuel, but I doubt whether many fish have done their cash flow forecasts or worked out their sums for interest paid or forgone. They just want to score off the Chancellor. They are swimming into his hands. What could suit him better? They are transferring resources to the economy's productive sector. They are buying something we can make here at home. They are paying now to buy later, which is a form of saving. They are stop- ping the building societies from financing the next house boom, and they are keeping their money away from the shops. Once more with feeling: another recovery led by house prices and consumer spending is something we need as much as a fish needs a coat-hanger. I am only sorry that I shall not be joining in this frenzy. I have more enjoyable demands on my cash-flow and have sometimes found myself accidentally delayed in paying tax. The Inland Revenue's rates of interest can be most reasonable.
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