Mary slams Tory VAT hike

Families are facing a grim start to 2011 thanks to the Tory led government's decision to raise VAT to 20%. Mary Creagh slammed the decision on 4 January at what she calls “the worst possible time for families and businesses”.

Mary said "Families are going to be hit hard this year as it will add about £300 a year to their shopping bill. This is the wrong tax at the wrong time. It is going to be tough for small businesses and haulage and distribution companies which we have a lot of in Wakefield. There will be pay freezes in the public sector and very small pay rises in the private sector. I am afraid that there is more heartache to come."

The VAT attack comes at a time when people are stretched as the impact of the world wide recession continues to be felt. Despite the worrying signs that the Government’s plans are hitting jobs and growth, they are insisting on going ahead with this unfair tax increase on the British public.

Mary said “Increasing VAT is wrong for so many reasons. It will hurt motorists as petrol prices and the cost of motoring will rise. It will hurt those families and pensioners when they go to the shops. And it will hurt small businesses many of whom will not want to pass on the increase in VAT to their customers”.

Perhaps most significantly the VAT hike is also a “jobs tax”. The Chartered Institute of Personnel and Development says that the VAT attack will hit 250,000 jobs.