On the fourth anniversary of the Tory-led Government’s VAT rise, new figures show that families in Ellesmere Port & Neston have paid on average £1,800 more in tax as a result.
In January 2011 David Cameron and George Osborne’s decision to increase VAT from 17.5 per cent to 20 per cent took effect. The Treasury’s own figures show that a 2.5% increase in VAT costs a couple with children £450 a year on average. Over four years, that means these families have paid a total of £1,800 more in VAT.
And having raised VAT in this Parliament, the Tories have so far failed to rule out another VAT hike in the next Parliament to pay for their £7 billion of spending promises.
Commenting, Councillor Justin Madders, Labour’s Candidate for Ellesmere Port & Neston, said:
“Before the last election David Cameron and George Osborne said they had no plans to raise VAT, but that’s exactly what they did after they got in. These figures show that over the last four years, local families with children paid £1800 more in higher VAT under the Tories.”
“Sadly, while ordinary working families in Ellesmere Port & Neston have been forced to pay more in the shops for everyday items, millionaires have benefit from a huge cut in their income tax.”
“Whatever the spin from the Government about the economy, I’ve been speaking to people every day who are still suffering a cost-of-living crisis. People in this area certainly can’t stomach a further increase in VAT, but the Tories have so far refused to rule this out.”
Shabana Mahmood MP, Labour’s Shadow Exchequer Secretary to the Treasury, added:
“Labour’s economic plan will back working families and balance the books in a fairer way. We’ll cut taxes for 24 million people through a lower 10p starting rate of tax, freeze energy bills, cut business rates and expand free childcare for working parents.”
“And we’ll get the deficit down in a fairer way by reversing David Cameron’s £3 billion a year tax cut for the top one per cent of earners.”