What do you think of the 2.5% VAT cut?

What do you think of the 2.5% VAT cut? It seems to have sparked a lot of debate on other sites. I think the main issue with it is the inconvenience that it will cause to small business owners for not much benefit. For instance, many small businesses will:

• need to update price lists
• need to update literature
• have to upgrade accounting software to ensure 15% is included in there
• lose additional cashflow that VAT brings

And I'm sure you can think of half a dozen more disadvantages. Not to mention the fact that very few larger businesses will pass the saving to their customers while many small businesses, particularly those in service businesses will have no choice.

I know there is not much that I, or anyone else can do about it now, but it would be interesting to hear your views.