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Monday
Sep132010

Lib Dem Leader Disagrees With VAT Rise

Whenever the rate of VAT goes up or down I notice rumblings of dissent coming from one group or another.  It is impossible to please everyone and this has been borne out by the opinions and comments of the leader of the Liberal Democrats in South Tyneside recently.

Councillor Joe Abbott has made it clear that he does not back the move to raise the level of VAT from 17.5% to 20%.  The move is set to take place early in January next year.

Councillor Abbott has stated that he believes small businesses in particular will suffer when the rate of VAT goes up.  He believes that other groups of people such as investment bankers should be targeted in order to bring in extra revenue.  The rise in VAT will, Mr Abbott believes, “hit the poorest in society... very hard.”

Those in support of the move to raise VAT have pointed out that some of the more essential goods and services, including heating bills and food items, will not be affected by the rise to 20%.  This should soften the blow for those at the lower levels of society who have to get by on a smaller income.  But the rise will still affect many people in many different areas, and it seems to be this fact that Councillor Joe Abbott is most in disagreement with.

His concern with small businesses is understandable, and we must wait and see what the real impact will be.  The decision to raise VAT has now been made and it will not be backtracked upon.

Contact St Matthew now if you are a small business owner and you are wondering how the rise in VAT could affect you.

 



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