Every Tory Prime Minister has increased VAT! This dates way back to 1973 when it was first introduced by Ted Heath. It seems that there may be yet another VAT increase on the cards.
The Prime Minister and her ministers seem to have avoided the question on the increase after Chancellor Philip Hammond mentioned it. He is considering a 2.5% flat rate increase, which will cost a two child family £450 a year.
It seems that this tax bombshell will come into effect if the Tories are re-elected in June. On the other hand, it appears that there will be a £70 billion tax cut for corporations and the higher income bracket.
Defence Secretary Sir Michael Fallon backed the plan to forget about the promise made by the party to not increase VAT, National Insurance contributions and Income Tax.
A VAT rise would primarily hit pensioners the worst. These people have worked all their lives and suffered years of real pay cuts. The higher income group will benefit with their tax relief.
“Everyone knows that VAT is the tax Tory Chancellors can’t resist hiking up. It’s the tax bombshell that the Tories are planning for low and middle earners if they are re-elected in June,” Shadow Chancellor John McDonnell said.
“A Tory VAT rise would clobber pensioners, the worst-off and working people who have suffered years of real pay cuts, while the Tories’ super-rich mates and corporations enjoy tax giveaways of £70billion,” assistant general secretary Steve Turner said.
At times it appears that the party does not care if it hurts the poor, as long as the high earners do not suffer. This Prime Minister is no different than the last one, with the same Tory agenda.
“A Tory government will hammer families with a VAT rise like every Tory PM has done since 1973,” Labour MP Wes Streeting, a member of the Commons treasury committee added.
“They don’t care that it clobbers the poorest hardest, that it hits people on middle incomes struggling to make ends meet, so long as they can keep on cutting taxes for the very wealthiest.”
“Theresa May is the same old Tory Prime Minister with the same old Tory agenda.”
VAT was first introduced at a flat rate of 10%, it was then cut to 8% by Labour, but it increased right up to 15% when Margaret Thatcher came into office.
Under John Major it rose again to 17.5%, with yet another increase under David Cameron to 20% in 2011, despite all his promises that it would not be increased.
This increase would cost families at least £2,250 over the next five year Parliament– with inflation meaning the true figure is likely to be even higher, if it comes into force.
It seems that the best thing to do is to wait for the manifesto, which will show what the Tories plan to do next. It looks like it will be the hard working Brits who will ultimately pay for the hard Brexit. It would be good to know exactly what the public can expect before the next election.
“He doesn’t want too many targets inside the manifesto that are too prescriptive, that don’t allow you, as the situation develops over the lifetime of the Parliament, the flexibility,” Defence Secretary Sir Michael Fallon backs Mr Hammond’s plan.
“The Tories are plotting a tax bombshell on hard-working Brits to pay for their hard Brexit,” Lib Dem MP Greg Mulholland said.
“Hammond must come clean on what taxes he plans to raise before the election.”