With all the excitement of the Town Council meeting of last evening, I never mentioned the VAT tax rise to 20% yesterday.
In the General Election campaign ALL parties were against an increase in VAT. All said VAT was regressive, hurting the lower to middle earners the most! This increase in VAT has nothing to do with deficit reduction, the coalition government are using the VAT rise to offset the cut in corporation tax, banks benefit £18 billion by 2014/15, income tax threshold changes and National Insurance changes for employers, these changes net the Treasury £12.6 Billion whilst the VAT rises income is expected to raise £13 billion.
Living in rural Britain our fuel costs continue to rise with the VAT and 1pence extra duty forcing the cost up, again more regressive tax measures.
Let's hope the government starts closing the loop holes in tax evasion, so everyone pays their fair share.