Michael Connarty
Main Page: Michael Connarty (Labour - Linlithgow and East Falkirk)Department Debates - View all Michael Connarty's debates with the HM Treasury
(14 years, 1 month ago)
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Michael Connarty (Linlithgow and East Falkirk) (Lab)
With all this talk of fairness, why is it that no one has mentioned VAT? A 14.5% increase in real terms in the VAT rate has been attacked by what I thought were Conservative-voting business people and families in my constituency, and will punish those at the lower end of the income spectrum. Why is such a high rate of VAT being pursued by this Government?
Mr Osborne
We are having to take decisions to close the highest budget deficit in the G20. I listened to what the previous Chancellor of the Exchequer said recently on “The Andrew Marr Show”. He was asked:
“we now read from Peter Mandelson’s book that you were quite keen on the idea of VAT going up”.
Alistair Darling replied:
“Well yeah, obviously…It would have allowed you to have done you know a lot more to take down the deficit…and would have…ameliorated some of the worst effects of reductions”.
For once, the previous Chancellor of the Exchequer had the right idea—[Interruption.] That is because he was overruled by the then Prime Minister.