Will 2.5% really make a difference?

The BBC are reporting that VAT will be cut by 2.5% to help get us ut of recession ( source http://news.bbc.co.uk/1/hi/uk_politics/7744273.stm ). My first reaction is to say "So what?" Cutting VAT by 2.5% means something selling for £100 will now cost around £97.50. I don't see that getting us moving, do you?

Then again, VAT is one of those those taxes that affects poorer people hardest since it's based on what you buy, and not what you earn. So a poor person pays the same level of  tax on clothes as a richer one. On that basis, reducing VAT is a good thing, and really it should be abolished. But I don't see it spending us out of recession somehow.