Conservative MPs have voted down a Lib Dem amendment today in Parliament calling for an emergency tax cut.
The amendment to the Queen’s Speech would have cut VAT to 17.5%, saving the average family £600 a year by cutting prices in the shops.
Rishi Sunak is refusing to cut VAT, despite being forecast to cash in £39 billion in extra VAT receipts over the next four years due to soaring inflation.
Liberal Democrat Leader Ed Davey said: “Cutting VAT would put money straight back into people’s pockets, and the Chancellor could do it at the stroke of a pen.
“Rishi Sunak’s refusal to do so while cashing in billions in extra VAT receipts is a betrayal of pensioners and families feeling the pain of soaring prices.
“People won’t forgive this government for refusing to help in their time of need. People won’t forgive the Conservatives for refusing to help in their time of need.”