Wednesday, June 22, 2022

Latest inflation figures: The chancellor must slash VAT now

Responding to the latest ONS figures which saw inflation increase to 9.1% in May, Liberal Democrat Treasury Spokesperson Christine Jardine MP said:

"Rishi Sunak is standing by while millions of people suffer from eye-watering levels of inflation - he either hasn't got any sense or any heart to not intervene.

"This Chancellor has hiked taxes time and time again, refusing to slash them to help with the cost of living emergency. Even when we know slashing VAT is a sure-fire way to help families while keeping inflation under control. 

"Instead, the Chancellor, his Prime Minister and his colleagues continue to sit on their hands while the country suffers, they are not fit for purpose."


Anonymous said...

Unfortunately, cutting VAT actually benefits wealthier people far more than those who are struggling. The most effective way to help those in real need would be to increase state benefits.

Frank Little said...

That is true. However, it is better than cutting taxes on earnings and it would have an immediate effect. Also, VAT is levied on road fuel, on gas and electricity supplies and on utility distribution, all of which impact on poorer people.