New Times,
New Thinking.

  1. Politics
15 June 2010

Simon Hughes fires a warning shot over VAT

Lib Dem deputy leader warns Osborne not to raise “the most regressive tax”.

By George Eaton

Simon Hughes, fresh from his success in the Lib Dems’ deputy leadership contest, has just made a highly significant intervention on tax. In an interview with the Daily Politics, the left-leaning MP signalled his unambiguous opposition to any rise in VAT, which he accurately described as “the most regressive tax”.

He said:

I hope that the Chancellor’s hearing the voices that say VAT is not the right tax to change in the Budget next week.

There is no good reason why Hughes should not get his way. Ignore George Osborne’s flat-out lie that “things are worse than we thought”; the latest figures confirm that he will be able to eliminate the bulk of the structural deficit without any unplanned tax rises.

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com
Visit our privacy Policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

Any tax increases (and spending cuts) above and beyond those planned by Alistair Darling are purely ideological. Yet Conservative voices continue to suggest that a 1 per cent rise in VAT, likely to be announced in Tuesday’s emergency Budget, is both desirable and necessary.

Either way, Hughes, with the support of his party’s grass roots, has laid down a clear marker. Should Osborne choose to ignore it, he will risk dividing the Lib Dems and, perhaps, the coalition, too.

Special subscription offer: Get 12 issues for £12 plus a free copy of Andy Beckett’s “When the Lights Went Out”.

Content from our partners
Can green energy solutions deliver for nature and people?
"Why wouldn't you?" Joining the charge towards net zero
The road to clean power 2030