News from Cornwall Labour

Labour calls on Cornwall’s Lib Dems to vote against VAT rise

Cornwall Labour Party is calling on Cornwall’s Lib Dem MPs to vote against plans to increase VAT to 20%.

Jude Robinson, Chair of Cornwall Labour Party said: “Low paid people and pensioners in Cornwall will be hit hardest by the increase in VAT to 20%. Pensioners are also hit by changes that will give them lower increases in pensions over the next two years and this VAT rise will cost them an average of £500 per year.

“In Cornwall, the three Liberal Democrat MPs would not have won their seats without thousands of Labour voters, who believed their pledges on keeping the Tories out of power and supporting fair taxes.

“It is within the power of the Liberal Democrats to stop this unfair tax that will hit the poorest and pensioners hardest. The Lib Dems opposed the VAT increase and they should keep their election promises now.”

A vote in the House of Commons to approve an increase in VAT from 17.5 per cent to 20 per cent is expected on Tuesday 13th July. The Conservative-Liberal Democrat Government announced in its Budget on 22 June that VAT would be increased by 2.5 per cent, even though during the election campaign the Conservatives said they had no plans to increase VAT and the Liberal-Democrats campaigned against increasing VAT.

In a letter to MPs Andrew George, Dan Rogerson and Stephen Gilbert today, Jude wrote

When asking for votes in May, Liberal Democrats campaigned hard against any increase in VAT because it is a regressive tax, which hits the poorest hardest. Yet next week, you are preparing to vote in favour of a VAT increase.

Pensioners in Cornwall will be hit hard by the tax, paying an average of £500 extra per year in VAT, while the changes made by the Chancellor will mean that they receive lower pension increases in 2012/13 and 2013/14.

We all know that tough decisions have to be made. Labour’s plan for halving the deficit in four years met the timetable set out by the G20 two weeks ago – and did so without an unfair VAT rise, without putting the recovery at risk and without hitting peoples’ jobs. It is the decision of the Lib Dem/Tory coalition to cut harder and faster.

There is no need for reviews or investigations into this. It is absolutely clear, as the Lib Dems agreed during the election campaign, that the VAT increase will hit the poorest hardest.

You all three asked – and won – Labour votes in Cornwall at the General Election by promising to keep the Tories out of power. These votes were absolutely crucial to you in winning your seats as Members of Parliament. Please keep your election promises and stand up for people, especially pensioners in Cornwall.

Other news from Cornwall Labour

• Hundreds sign Falmouth for Orders petition - 30 January 2012
• Labour and unions campaign for dredging the port of Falmouth - 18 January 2012
• Regional funding put at risk by ministers' failure to act - 8 January 2012