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Miliband: VAT rise is wrong tax at wrong time

Ed Miliband has attacked today’s rise in VAT to 20 per cent branding it the wrong tax being introduced at the wrong time.

Speaking to Labour activists in Oldham East and Saddleworth yesterday as they prepare for next week’s by-election there, Labour leader Ed Miliband criticised the Liberal Democrats for supporting a policy they attacked in opposition.

Miliband said: “This is the wrong tax at the wrong time. Nick Clegg warned of a Tory VAT bombshell. He didn’t tell us that he would be standing by and applauding when George Osborne dropped that bombshell.”

The Liberal Democrats ran a poster campaign during last year’s election claiming that under a Conservative government the average family’s VAT bill would rise by £389.

Miliband added: “The squeeze designed in Downing Street will come to your street, to the high street, to every street up and down this country.”

VAT rose from 17.5 per cent to 20 per cent at midnight last night and last month Chancellor George Osborne announced it would be permanent.

On the BBC Today programme this morning he refused to rule out further increases but said the Government had laid out their plans to reduce the deficit.

The Federation of Small Businesses says 70 per cent of small businesses expect the rise to have a negative impact on their business and have urged the Government to review the increase once the deficit has been “significantly reduced” and return it to 17.5 per cent.

Last week Shadow Chancellor Alan Johnson called on the Government to rethink the VAT rise, but Conservative Party deputy chairman and Treasury select committee member Michael Fallon dismissed Johnson’s call as hypocritical opportunism.

He said: “This is exactly the kind of hypocritical opportunism the public has come to expect from Alan Johnson. The VAT rise is quite simply unavoidable after 13 years of Labour rule took us to the brink of bankruptcy.”

He added: “It is a progressive and fair way of repairing the mess that Labour left behind.”


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There are 4 comments at the moment, we would love to hear your opinion too.

  1. pete wildebeast 4th January 2011 at 1:19 pm

    It’s all very well Milliband criticising the VAT increase – but what alternative does he propose? Alasdair Darling wanted to increase VAT and was knocked back by Gordon Brown.

    And he says it is “the wrong tax at the wrong time” – does that imply that there is a “right tax at the right time”?

  2. I think you will find that Osbourn doesn’t give a flying…fig…about the poor or small businesses, and Michael Fallon is the sort of toadying vacuous cretin who wouldn’t know a progressive policy if it bit him on the Pen15.

  3. Clegg is a weasel, cameron and osbourn cretins, i hope everyone is happy with their election choices now. Don’t tax the bankers that caused it all tax everyone!

  4. Yeah, yeah, like we’re going to give an ounce of credibility to any criticisms of tax policy from Labour, the party that went catastrophically OTT with its traditional modus operandi of tax & spend, tax & spend under that economic maniac Gordon Brown. AT the very time the government should have been repaying its borrowings, it was borrowing more and more and more.

    And THEN, in the wake of all that, they even had to sick humour (at our expense) to leave a note for the incoming chancellor telling him that there was no money left because they’d spent it all and billions more.

    So, Mr Miliband, I don’t give two hoots for your opinions and I don’t see you lasting as Leader of the Opposition for more than 18 months at the outside.

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