HMV unlikely to benefit much from budget measure

The Daily Mail suggested that George Osborne might have saved HMV:

HMV has benefited from a much needed Budget boost as Chancellor George Osborne took the first step towards closing a tax loophole that made the price of its CDs and DVDs less competitive.

The government announced plans to reduce the special tax break known as low value consignment relief (LVCR) which allowed retailers outside Europe to sell low value items free from VAT.

And, to be fair, the city did give HMV's shares a little rally straight after the budget.

But is it really good news for HMV?

Osborne's shift in the LVCR moved the place beyond which VAT wouldn't be reclaimed on products shipped from £18 to £15 - in other words, from 'well over the price of most CDs and DVDs' to 'still quite a bit over the price of most CDs and DVDs'.

And, more importantly, if the measure really did make internet purchases less cheap, that'll hit UK based online retailers who ship their stuff from the Channel Islands. Retailers like, erm, HMV.

Gennaro Castaldo Watch: Don't call me darling

Amongst the acres of coverage of the Pre-Budget Statement, who can you really rely on to call the Chancellor correctly? Why, HMV fact doctor Gennaro Castaldo. Will the VAT cut save us, Gennaro?

HMV spokesman Gennaro Castaldo agreed: "Retailers are already seeing huge price decreases at the moment, so 2.5pc is unlikely to make a significant difference.

"There are probably better ways to put money into the economy. We are finding that consumers have already taken into account the discount they will get from retailers. Sales of our DVD box-sets are already up by 10pc in terms of volume."

The retailer is currently selling a number of box-sets at a discount. The collection of Alfred Hitchcock films, which usually retails for £80, for example, is now selling for £20.

I don't blame Castaldo for taking the opportunity of being asked about the yawning chasm of the PSBR to plug a fairly standard end-of-line price cut on an elderly box set, but it's surprising the Telegraph saw fit to include the detail in its report.

Ridicule is nothing to be scared of

Somewhat bemusingly, Mary Wakefield on the Spectator's Blog suggests that Alistair Darling should have, erm, read his speech over an Alan Ant album:

Who else reckons that Mr Darling's plodding budget could have used a lively soundtrack? Well, here's my recommendation: Goody Two Shoes by Adam and the Ants. The lyrics pretty much sum up the whole sorry affair!

"Put on a little makeup makeup
Make sure they get your good side good side

If the words unspoken
Get stuck in your throat
Send a treasure token token
Write it on a pound note pound note

Goody two goody two goody goody two shoes Goody two goody two goody goody two shoes Don't drink don't smoke - what do you do Don't drink don't smoke - what do you do

Subtle innuendos follow.

There must be something he's hiding"

Mary, we presume, is unaware that the song is written about the way the press attacked Adam for his (then) straight-edge habits. So, yes, Darling probably would feel justified in playing the track in response to the press attacking him for a straight-edge budget by publishing the lyrics of a song about being attacked for a... and so on.

The Spectator really shouldn't try engaging with popular music, should it?