VAT rise will hit the poor

Published 20 Jul 2010 09:30

THE Con/Dem coalition's decision to vote for a rise in VAT will hit the poorest hardest and hinder our already faltering economic recovery.

Some estimates suggest the VAT bill for the poorest households will go up by £31-a-week, at a time when unemployment benefit will be reduced in real terms, Tax Credits cut and massive pressure put on Housing Benefit, particularly in areas where rented housing is expensive.

Our public services, already facing swingeing Westminster cuts, are also set to be hit with a double whammy through this VAT bombshell.

The NHS in Scotland, for example, will be hit by a £26m rise in its VAT bill.

What, however, will add insult to injury for many Scots is the decision by Scottish Labour MPs to abstain in the vote, especially after they wrote to Scottish LibDem MPs urging them to vote against the VAT increase.

Claims that Labour will protect Scotland from damaging Tory policies have shown to amount to nothing more than an empty promise as they stepped aside to allow the Tories and Liberals to impose savage cuts and painful tax hikes.

Alex Orr, address supplied

Tweet

This article appeared in Dumbarton & Vale of Leven Reporter 20 Jul 10

Follow @dumbartonreport

Return to the main index, get more from this section or browse our Opinion archives.