Posts Tagged ‘labour’s hidden VAT increase’
Labour’s hidden VAT increase!
In the run-up to the May 6th General Election, the outgoing Labour government left more IEDs (improvised explosive devices) than the Taliban. Uncosted projects, unaffordable promissory loans to marginal constituencies and most importantly a black hole in their 56 billion pound pre budget report savings estimates of approximately 10-12 billion pounds.
10-12 billion pounds is, by no coincidence, roughly the amount a 2.5% increase in VAT would bring in annually to the exchequer! George Osborne said in 2008…
“This is Labour’s secret tax bombshell. It explains why there is a black hole (of £10bn in 2011-12) in the PBR – because at the last minute Gordon Brown clearly decided to keep secret his plan to hit everyone with an extra tax rise to pay for his borrowing binge.”
Labour now in opposition know this of course, they set the trap assuming they were going to be kicked out of office. The problem is, there is plenty of evidence in the treasury in the form of unpublished proposals, to show Labour were certainly planning a VAT increase in the unlikely event they were returned to power.
An article in the Daily Telegraph pointing the finger at a Labour treasury minister at the same period stated….
In January 2010, the rate of Vat will revert to 17.5 per cent. However, a legal document laid before Parliament states that VAT will “subsequently increase to 18.5 per cent in 2011-12″. It is signed by Stephen Timms, a junior Treasury Minister.
This amounts to the equivalent of CCTV evidence, Labour’s smoking gun – they are exposed as having double standards – as usual! As the budget debate goes on in parliament, Labour MPs, backbenchers and shadow ministers stand up one after the other, knowing they were always going to fill that black hole with a VAT increase, and attack the coalition for doing what they were planning all along.
Thank goodness these hypocritical lying louts are out of office.
