Newspaper article The Evening Standard (London, England)

Poorest 'To Be Hardest Hit by Tax on Spending'

Newspaper article The Evening Standard (London, England)

Poorest 'To Be Hardest Hit by Tax on Spending'

Article excerpt

Byline: Joe Murphy Political Editor

GEORGE OSBORNE was accused of "treating people like fools" today after the Chancellor claimed the VAT increase would hit the poor less hard than the rich.

The attack was led by Labour leader Ed Miliband who said the jump in sales tax to 20 per cent would hit pensioners, low income families and people on the breadline hardest.

The VAT rise from 17.5 per cent came in at midnight and triggered price rises in high street stores, petrol station forecourts, pubs and restaurants and ticket offices.

Defending the [pounds sterling]13.5 billion tax rise as a "tough but necessary step" to deal with the record national deficit, the Chancellor insisted that alternative taxes would have hit the poor harder.

He said: "I think because the economic damage of an income tax rise or a National Insurance rise ... then I think absolutely income tax and National Insurance would have a more damaging impact on poorer people in our society. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.