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Monday
Jul262010

Lib Dem MP Abandons Move to Oppose VAT Rise

It has been interesting to watch how various Conservative and Liberal Democrat MPs have reacted to the recent coalition government.  The coalition has meant that both sides have had to backtrack on certain policies laid out in the pre-Election drama.

One story I read with interest recently concerned the ideas laid out by the Lib Dem MP Andrew George, who is the MP for St Ives in Cornwall.  He originally opposed any moves to raise the level of VAT from 17.5% to 20%, as announced in the recent emergency Budget.

But in a statement made at the end of June he decided to ignore his previous wishes and instead put his support firmly behind the plans.  He has stated he has specific concerns over the amount of VAT that will be paid and the amount that the poorest in society will be worse off by.  His main concern seems to be that the poor will suffer more than those with more money.

In the end, Mr George’s planned revolt turned into nothing of note.  Only two MPs – both of them Lib Dems – voted against the measure.  The new rate of VAT will come into play early next year in 2011.

I think this is just one example of the more interesting political landscape we now have as a result of the coalition government now in place.  Two parties are having to come together to forge a new alliance and there is every chance that more disagreements and issues such as this will come to the fore in future.

If you wish to know more about VAT or any aspect of taxation, St Matthew is here to help. 

 



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