Soaring inflation: Cut VAT to help families and keep prices down

Soaring inflation: Cut VAT to help families and keep prices down

Parliamentary news
The Liberal Democrats have called on the Government to cut VAT, to help families with the cost of living while keeping soaring inflation in check. It comes as the Chancellor Rishi Sunak rejected calls to cut taxes now as he claimed it could risk fuelling inflation. When the last emergency VAT cut was introduced in December 2008, inflation fell from 4.1% to 3.1%. The ONS also found that the cut to VAT in the hospitality sector in 2020 led to a fall in consumer inflation. The Office of Budgetary Responsibility (OBR) has forecast that Rishi Sunak is due to rake in an extra £8.6 billion in extra VAT due to inflation over the next year, or £430 per family. Liberal Democrat Treasury Spokesperson Christine Jardine said: “Rishi Sunak’s excuses for…
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Johnson must slash taxes now instead of making “empty promises”

Johnson must slash taxes now instead of making “empty promises”

Parliamentary news
The Liberal Democrats have piled pressure on Boris Johnson to help families by bringing in an emergency tax cut now. Speaking on a campaign visit to Tiverton and Honiton today, Liberal Democrat Treasury Spokesperson Christine Jardine MP said: "Families are facing record fuel prices and soaring bills, but Boris Johnson is still insisting on hammering them with tax rises. This is a government in crisis, too divided and weak to offer the help people need to cope with the cost of living emergency. "Instead of making yet more empty promises about tax cuts in the future, Johnson should listen to Lib Dems calls for an emergency VAT cut now to put money back into people's pockets. Every day that Conservative ministers fail to act means more pain for families struggling…
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Conservative MPs vote against tax cut in “betrayal” of families

Conservative MPs vote against tax cut in “betrayal” of families

Parliamentary news
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…
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Rishi Sunak set for £5bn VAT windfall from fuel price rises as motorists treated “as cash cows”

Rishi Sunak set for £5bn VAT windfall from fuel price rises as motorists treated “as cash cows”

Parliamentary news
The Treasury could cash in on up to £5 billion extra in VAT if fuel prices continue to climb, analysis by the Liberal Democrats has revealed. This would be double the estimated £2.5 billion cost of cutting fuel duty by 5p, as Rishi Sunak is expected to do tomorrow. The cost of fuel has surged by 30p per litre in the wake of Putin’s invasion of Ukraine. The Liberal Democrat analysis shows that if fuel prices continue to climb as expected, with both petrol and diesel hitting more than £2 a litre, this Treasury windfall could climb to almost £5 billion. The research is based on figures from the RAC Foundation showing British motorists used 16.9 billion litres of petrol and 30 billion litres of diesel in 2019. It also…
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Lib Dems demand emergency VAT cut to help families with cost of living crisis

Lib Dems demand emergency VAT cut to help families with cost of living crisis

Parliamentary news
Ed Davey calls on the Chancellor to slash VAT from 20% to 17.5% for one year to tackle soaring bills.The move would save families an average of £600 as the cost of living crisis hits hard.Slashing VAT would boost struggling local high streets and the economy while keeping spiralling inflation down. The Liberal Democrats have demanded an emergency cut to VAT to protect families from soaring bills and the worsening cost of living crisis. The party has proposed reducing the standard rate of VAT from 20% to 17.5% for one year, a move that would put an average of £600 back into the pockets of UK families. It comes amid warnings that the war in Ukraine will worsen the cost of living pressures facing households, with energy, food and fuel…
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Liberal Democrat welcome for Chancellor’s cheap eats announcements

Borough news, Campaigns
The Leader of the Opposition and of the Liberal Democrat Group on Oldham Council, Councillor Howard Sykes MBE has welcomed the reduction in VAT on food purchased in pubs, cafes and restaurants from 20% to 5% for a six-month period starting last week. This was one of the Chancellor Rishi Sunak’s announcements on the 8 July. Councillor Sykes is especially pleased because the Oldham Liberal Democrat Group proposed just such a VAT reduction in a motion almost six years ago to Oldham Council. Councillor Sykes: “In September 2014, the Liberal Democrats brought a motion before Oldham Council calling for a VAT cut to 5% from 20%. This was in support of Tax Parity Day, an annual event hosted by pub chains, such as Wetherspoons, where food is reduced in price…
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Lib Dems lead call for moratorium on VAT on energy bills in the face of coronavirus crisis

Parliamentary news
Liberal Democrat MP Jamie Stone has secured cross party support for his letter to the Chancellor calling for a moratorium on VAT on energy bills through the coronavirus crisis.  The letter comes in the wake of figures from Uswitch forecasting that households could see bills increase as much as £195 as  a result of spending more time at home due to government restrictions to curb the spread of the virus.  Jamie Stone, Liberal Democrat MP for Caithness, Sutherland and Easter Ross said: “Right across the UK people are desperately worried about how they will make ends meet in the face of this crisis. Many already find themselves out of work, on reduced pay or having to rely on Universal Credit. Ensuring people using prepaid meters are not cut off is a first step,…
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