New tax bombshell: 20% VAT

Roland Watson, Suzy Jagger and Rachel Sylvester
The Times
Feb. 13, 2010

A rise in VAT is looming whichever party wins the general election, as Labour and the Conservatives draw up plans to balance Britain’s books.

Alistair Darling and George Osborne, the Shadow Chancellor, are both considering raising VAT to as high as 20 per cent — the European average — from the current rate of 17.5 per cent, The Times has learnt.

Doing so would raise an extra £13 billion a year at a time when financial markets are searching for signs that whoever takes power is serious about tackling Britain’s £178 billion deficit.

Though Labour and the Tories have denied having any current plans to increase VAT, neither will rule it out and The Times understands a rise in the tax is being considered by both parties.

One City source close to the Tory tax team said: “There is a view across the Conservative Party that VAT is going to have to go up.”

Continued












All original InformationLiberation articles CC 4.0



About - Privacy Policy