The current situation is not a 'tax cut' its a tax relief.
As an example, most mortgage lenders offer 'payment holidays', these are just that.... a holiday, not a mortgage cut. After a time the mortgage repayments will start again, and the total re-payable amount will be the same. Much the same as the VAT situation at the moment. For now it is at a temporary lower amount, that will increase next year. The total amount of tax revenue the government need to create is the same, so other taxes will increase to meet this ie... national insurance.
Waste of time in my opinion, the only people to benifit will be the small retailers who don't pass the savings on, the very same people who are struggling to survive and going to the wall on a day by day basis..............
The government need to make a choice, either 'weather the storm' of the recession - ie cut backs ect.... Or fight it very hard by injecting much larger amounts into the economy - which is a huge gamble.
Tough choice, but we seem to be dithering somewhere in between at the moment, which will only prelong the hardship.......