VAT rise 'would be detrimental to UK consumers'

www.moneynews.co.uk > General finance > VAT rise 'would be detrimental to UK consumers'

VAT rise 'would be detrimental to UK consumers'

Mon 27th Jul 2009

Raising VAT would have a detrimental effect on consumers in the UK at a time when every penny counts, it has been asserted.

Chief executive of the TaxPayers' Alliance Matthew Elliott said that Alistair Darling should not be considering a VAT rise at the present time and if anything, the rate should be cut to put some pennies back in consumers' pockets.

This would also serve to "keep the economy on track", he argued.

"The government needs to cut spending so that it can bring down the deficit and start putting in place tax cuts to permanently ease the burden on ordinary families," he added.

Long-term measures such as this would mean more to Brits than short-lived decreases in VAT, Mr Elliott concluded.

According to the pre-Budget report, which was published last November, the reduction of 15 per cent in VAT was only meant to last from December 1st 2008 to December 1st 2009.

Click here for more general finance news

Related News : General finance
	Citizens Advice welfare applauds government
	Confused.com energy defends British Gas
	Bank of Ireland passes stress test
	Tesco Mobile deal 'courts consumers'
	Scottish Widows Investment Partnership notes favourable response
	Customers should fix now, says moneysupermarket.com energy
	Confused.com highlights importance of getting the best deal
	Prices on the rise, says moneysupermarket.com energy
	Bank of Scotland economic report 'suggests transitional phase'
	Clydesdale and Yorkshire Banks security advice issued