TORIES AND LIBERALS VOTE FOR VAT BOMBSHELL

TORIES AND LIBERALS VOTE FOR VAT BOMBSHELL

LABOUR MPS LET SCOTLAND DOWN BY ABSTAINING ON VAT VOTE

SNP Treasury spokesperson Stewart Hosie MP has hit out at the London
parties after the Conservatives and Liberal Democrats this evening
(Tuesday) voted to raise VAT, while Labour MPs abstained in a vote for
an SNP amendment to bring relief for households and businesses.

Commenting, Mr Hosie said:

“The Con/Dem coalition’s decision to proceed with this rise is
economically illiterate. This increase in VAT will cause real pain for
households and businesses, and hinder economic recovery.

“For Labour MPs to sit on their hands and abstain on this vote is
absolutely unforgivable. First Labour let the Tories into government,
and now they are standing back while the Tories and Liberals impose
savage cuts and painful tax hikes. This failure will haunt the Labour
Party in Scotland for years to come.

“The poorest families will be hardest hit with some estimates
suggesting their VAT bill will go up by £31 a week. Unemployment
benefit will be reduced in real terms, tax credits cut and massive
pressure put on housing benefit, particularly in areas where rented
housing is expensive.

“Increasing VAT will put a strain on our public services at a time
when they need support more than ever. The NHS in Scotland, for
example, will be hit by a £26m hike in the VAT bill.

“The VAT increase also piles the pain on businesses already struggling
through Labour’s recession – taking spending power out of the economy
and exacerbating cash flow problems.

“The Tories and the Liberals have already endangered the recovery by
cutting too far and too fast. The decision to increase VAT is a
political choice and it is a wrong choice.”