Tag Archives: vat

At 2.15pm on Sunday Conference will be debating a motion F30 Tackling the cost of living crisis.

A swathe of proposals are being recommended, including scrapping the rise in NI, ending the freeze on Income Tax personal allowance, uprating pensions and reinstating the £1000 boost to Universal Credit amongst others. These are in addition to policies that have already been agreed such insulating homes, and taxing income from capital more fairly. Three amendments, which add (or remove) options, will also be discussed.

Ed Davey has today added to the mix by calling on the Chancellor to take the radical step on cutting VAT from 20% to 17.5% for one year. This would save families £600 on average. It would also boost the economy by shoring up consumer spending, supporting local high streets and keeping inflation lower than it might have been.

It would also be simple to introduce and would not require primary legislation.

Ed says:

This is crunch time for the Conservatives and the Chancellor. Their cost of living crisis is hitting families hard and it is about to get worse. Will Rishi Sunak act or will he let families up and down the country suffer more financial pain?

An emergency cut to VAT is desperately needed for the millions of people around the country worried about making ends meet. High street businesses that fear going to the wall would receive critical support, as people who are feeling the pinch spend more at their local shops, cafes and restaurants.

This is a once-in-a-generation crisis, and the government must step up to help struggling households and businesses on the brink. Instead of clobbering struggling families with a tax hike, the Chancellor should be putting money back into their pockets.