Westminster VAT hike will raise weekly bills for families – Sinn Féin

THE WESTMINSTER Government’s VAT rise starting today from 17.5% to 20% will mean higher weekly shopping and heating bills, hurting most those who can least afford it and it is the wrong way to address the deficit, Sinn Féin Economy spokesperson Mitchel McLaughlin has said:

This VAT increase will reduce the spending power of the consumer and affect any economic recovery while increasing inflation.

It is another example of the mistaken economic policy of cutbacks, rather than investment, to escape recession.

The increase in VAT will really affect those who can least afford it by reducing money for the weekly grocery bill, it will add to already inflated home heating bills, and will increase fuel prices at the pumps to record highs.

Mitchel McLaughlin said that the raising of VAT is expected to bring in £13billion but the Conservative/LibDem Government should address the burden the banking system has placed on the budget then they should look at those who should be paying their way.

The tax write-off granted to Vodafone of £6billion would take in half of the amount wants from the VAT rise.

If the British Government were to bother to delve deeper this amount could easily be made up by identifying other tax-dodgers and taking appropriate measures to recoup lost taxes.