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Party calls on the Chancellor to slash VAT from
20% to 17.5% for one year to tackle soaring bills.
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The move would save families an average of £600
as the cost-of-living crisis hits hard.
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Slashing VAT would boost struggling local high
streets and the economy while keeping spiralling inflation down.
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The Welsh Liberal Democrats have demanded an
emergency cut to VAT to protect families from soaring bills and the worsening
cost of living crisis.
The Party has proposed reducing the standard rate of VAT
from 20% to 17.5% for one year, a move that would put an average of £600 back
into the pockets of Welsh families. It comes amid warnings that the war in
Ukraine will worsen the cost-of-living pressures facing households, with
energy, food and fuel bills all expected to rise further. Inflation is forecast
to reach 8% in April, its highest level in decades.
Under the Welsh Lib Dem plans, the economy would be boosted
by shoring up consumer spending and supporting local high streets up and down
the country. The proposal would also be expected to keep inflation lower than
it would have been.
The emergency change to VAT could be rapidly introduced by
the Chancellor for one year without the need for new primary legislation. The
Welsh Liberal Democrats have said he should use the Spring Statement on March
23 to bring forward the change and scrap the Conservatives’ National Insurance
tax hike, to offer much-needed respite to millions of families.
Commenting Welsh Liberal Democrat Leader Jane Dodds said:
“Now is the time for action from the Conservatives and
Rishi Sunak. Their cost-of-living crisis is hitting families hard and it is
about to get worse. Will Sunak act or will he let families up and down the
country suffer more financial pain?
“An emergency cut to VAT is desperately needed for the
hundreds of thousands of Welsh people worried about making ends meet. High street
businesses that fear going to the wall would receive critical support, as
people who are feeling the pinch spend more at their local shops, cafes and
restaurants.
“This is a once-in-a-generation crisis, and the
government must step up to help struggling households and businesses on the
brink. Instead of clobbering struggling families with a tax hike, the
Chancellor should be putting money back into their pockets.”
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