News from Labour Matters

Lib Dems and Tories gang up to raise prices in time for Christmas

A Liberal Democrat move to add 2.5% VAT back on prices in time for Christmas was defeated despite the support of Cameron’s Conservatives, the BBC reports. The vote was defeated by Labour MPs who, apart from Frank Field, supported the Government giving them an 80 vote majority:

For the government Mr Timms said the VAT cut was a fair way to deliver money to the economy because low income households spent a larger share of their income on VAT than richer households.

He also said tax cuts would not help those who do not pay income tax, such as pensioners.

The average household spent £900-a-month on VAT-rated goods and services and would save around £20 a month, he said.

He said the Conservatives would “turn their backs on families and businesses”.

“This is the right stimulus for families, it’s the right stimulus for businesses and it’s the right stimulus for the UK economy,” he said.

Read the full article.

Other news from Labour Matters

• Viewers turned off by soft-soap Cameron - 15 March 2010
• Labour releases powerful film on Conservative crime choices - 9 March 2010
• David Cameron's claim to have changed the Tories is exposed as hot air - 7 March 2010