At Wednesday night's Council meeting a motion opposing the increase in VAT proposed by the Con Dem coalition was discussed. Each party has its own opinion about this increase - I together with my Labour colleagues think the rise to 20% is pernicious because it hits the poor and disadvantaged more than the rich. It will also take large amounts of money away from charities. The Tories on the Council opposed the motion and supported the rise.
However we will never know what the Liberal Democrats and their allies the Community Action Party thought because their leader Cllr Tushingham had disappeared before the motion was discussed together with most of his colleagues.
I, together with the voters of Wigan, would have been very interested to know how they viewed this rise. It should be noted here that Community Action has joined the Liberal Democrats in the Council to form the Democratic Alliance and that in doing so is supporting the Con Dem alliance in Parliament.
2 comments:
You wrote
It will also take large amounts of money away from charities
Hardly true as charities are VAT exempt, that is why there are some dubious charities. I think you will agree Public Schools are a case in point.
However, when your party hit the low paid with the abolition of the 10% bracket and the reduction of tax fom 22 the allied reduction of tax fom 22% to 20% hit charities with their Gift Aid.
In answer to crossbencher's comments I have copied below an article from Progress magazine.
Oppose the charity VAT rise
The LibCon coalition VAT bombshell will hit not just the poorest in society most but today we learn also those who help the poor, the destitute and the vulnerable. Read why and sign the petition to stop this happening.
UK charities are already treated less favourably than many of their public and private sector equivalents. The Charity Tax Office figures would suggest that the new 20 per cent VAT rate would cost charities and additional £150 million. More worrying still is that small and medium sized charities will be hit the hardest.
This ignores the fact that charities have taken a recession double-whammy already - less income through donations and increased service demand because more people require their vital services.
Today Labour frontbencher, Liam Byrne is proposing an amendment with ACEVO to exempt the third sector from the VAT bombshell. This will protect the sector against the worst instincts of the LibCon government.
Progress is joining the ACEVO campaign and encouraging our members and supporters to sign a petition which will be presented to the Progress Chair, Stephen Twigg MP, this evening before the vote. Sign the petition now.
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