Entries tagged with “VAT” from Working For Walthamstow

Speaking following the Government's budget, Walthamstow's MP Stella Creasy said:

"This budget is bad news for thousands of families in Walthamstow who will see their paypackets shrink or even disappear as jobs are lost, and the costs of everyday items like electricity and gas rocket up as VAT rises.  Nothing about these proposals is fair- from cutting child tax credit and support for families with babies and toddlers, to axing the support for families at risk of losing their homes through mortgage support.  Londoners will be particularly hit by these proposals as the cost of housing and living here is already more expensive than in other parts of the country. Don't forget round here many people also work in the public sector too. David Cameron and Nick Clegg both spoke out against the VAT increase before the election but now we see their true colours in Government as they risk economic recovery and growth for their own ideological obsession with cuts."

Stella also committed herself to leading local action to help families manage the impact of this budget on their finances and urged other concerned residents to join her:

"I can't sit by and watch this Government make families, small businesses and pensioners in Walthamstow struggle to get by- the risk that this budget will push many locals into debt is too great. I will join others objecting to these cuts in parliament as we debate the budget. I also intend to lead local action to try to help those who find themselves at risk of debt as a result of these changes too. I'm asking other local residents who want to work with me to help our community withstand the impact of this Government's reckless budget and get in touch - our first community conference on this will be on the 14^th July."

Residents and organisations interested in participating in this work should get in touch with Stella either on email at stella@workingforwalthamstow.org.uk or by calling 020 8520 6586.   

Ends.

Notes to Editors

1. 1.     R3, the insolvency trade body, estimate that there are nearly a million people in the UK struggling with debts who have not sought advice and 500,000 people with formal debt repayment plans in place. In the last year alone 26,000 people were declared bankrupt. The predominant cause of insolvency for both men and women is unplanned changes to personal circumstances including illness or job losses.
2. 2.     According to credit action.org.uk, total UK personal debt at the end of December 2008 stood at £1,457bn and the average household debt in the UK was £9,550 (excluding mortgages).
3. 3.     On the evening of the 14 July, Stella Creasy will be holding a discussion on personal debt in Walthamstow along with representatives of local community and voluntary groups in Westminster. This forms part of her ongoing work in addressing poverty within the Waltham Forest area.
4. 4.     The Budget today announced that VAT will rise from 17.5% to 20% in January 2011. Labour rejected a VAT increase as part of a deficit reduction plan, and chose to increase National Insurance Contributions instead, because VAT hits everyone, especially the poorest and pensioners.
5. 5.     Before the election, the Liberal Democrats warned that the Conservatives would raise VAT.

"Our plans do not require a rise in VAT. The Tory plans do.  Their tax promises on marriage and jobs may sound appealing. But they come with a secret VAT bombshell close behind."

Nick Clegg, Liberal Democrat press release, 8 April 2010

                                                Liberal Democrat election poster, 8 April 2010

During the election campaign, the Conservatives repeatedly denied that they had plans to raise VAT.

"We have no plans to increase VAT."

George Osborne, The Times, 10 April 2010