Delyn MP David Hanson has welcomed a defeat in the House of Commons on a Liberal Democrat motion which would have annulled the Government’s reduction in VAT from 17.5% to 15%. This move was also supported by the Conservative party.
These are exceptional times requiring exceptional measures. What families and businesses need is real help now and the VAT reduction from 17.5% to 15% provides this help. It is the right measure because it is: timely – existing powers enabled immediate action; temporary – from 1 Dec until the end of next year; and targeted – impact on consumer and business spendin
The VAT reduction is part of this Government’s wider action including help for pensioners, families with children and £145 of tax cuts for all through raised personal allowance.
If the Government did not act now it will cost more – more to the economy, more to the public finances and more to society. If the opposition had introduced a timely fiscal stimulus on a similar scale in the last economic downturn it could have saved an estimated 300,000 jobs.
David Hanson said:
“These are tough economic times and the Government has made its choice; action to support business and action to put money in the pockets of hard-working people here in Delyn.
“The VAT cut is the equivalent of the Govt giving back £12.5bn to consumers and the economy and I am pleased that this opposition motion has been defeated.”