In what's being described as the biggest shake-up of Labour's economic policy since it came to power in 1997, chancellor Alistair Darling has cut VAT from 17.5% to 15% for 13 months.

Obviously this is as a response to the "exceptional" economic circumstances the world is currently facing with the global downturn, and is designed to get UK consumers spending in the run up to Christmas.

The government says the 2.5% cut should see about £12.5 billion put back in consumers' pockets over the year period.

The cut will go into effect from 1 December, so, looking at this in terms of gadgets - and as long as retailers don't do the dirty on us -

every single

consumer electronics product on sale in the UK will be 2.5% cheaper after the weekend.

For example, a 32GB iPod touch currently on sale through Apple's online store for £289.00 should drop £7.22 to around £282.

Alternatively, a larger purchase such as a 50-inch Pioneer Kuro plasma on offer with Comet for £2399.99 should leave you with an extra £60 in your pocket after Monday.

Will this entice you to spend more this Yuletide? Have your say in the comments box below...