Belfast Telegraph

Home News UK

VAT tax hike 'cost families £1,800'

Chancellor George Osborne's VAT tax hike has cost families an average of £1,800 since its introduction four years ago, Labour has said.

Shadow treasury minister Shabana Mahmood said the 2.5% increase in the rate of VAT from 17.5% to 20% - which took effect on January 4 2011 - had cost families with children £450 a year on average, according to Treasury figures.

"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," she said.

"Raising VAT on families and pensioners is what Tory governments always do. The truth is that the only people who have got a big tax cut under this Government are those earning over £150,000."

A Conservative spokesman said that they had been forced to take "difficult decisions" to deal with the deficit in the public finances left by the last Labour government.

"Labour appear to be saying they would borrow £12 billion more to reverse this decision - meaning more debt for our children to repay," the spokesman said.

Your Comments

COMMENT RULES: Comments that are judged to be defamatory, abusive or in bad taste are not acceptable and contributors who consistently fall below certain criteria will be permanently blacklisted. The moderator will not enter into debate with individual contributors and the moderator’s decision is final. It is Belfast Telegraph policy to close comments on court cases, tribunals and active legal investigations. We may also close comments on articles which are being targeted for abuse. Problems with commenting? customercare@belfasttelegraph.co.uk

Popular

From Belfast Telegraph