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Harman reveals VAT review plans

posted : TUESDAY, 28TH JULY 2009 00:08:21 BST comments : 3
- Search: VAT review harman

Labour's deputy leader has suggested that a planned increase in VAT was "under review" amid concerns that it could hamper any economic recovery.

A further announcement on the issue could be expected in the autumn Pre-Budget Report, Harriet Harman said.

Chancellor Alistair Darling cut VAT from 17.5% to 15% last year as part of his strategy to fight the recession.

However, he made clear it was a temporary move that would be reversed on January 1, 2010.

But business leaders warned the increase could set back the economic recovery.

Asked about the plans on Channel 4 News, Ms Harman said: "Well, you can rest assured that the Chancellor, Alistair Darling, is keeping absolutely every issue in relation to the public finances and (of) the impact of tax on businesses and family finances... they keep them under review every day of the week and they will be making further announcements."

She added: "Any announcements that have to be made will be made in the autumn in the Pre-Budget Report."

Ms Harman also sidestepped questions about the Treasury's projection that the UK economy will be out of recession by the end of 2009.

"I am not making any predictions about the recession," she said.

"Of course the Treasury have to have forecasts and they have to review those forecasts."

    Stuart Edinburgh
    Monday, 27 July 2009 01:42:03 BST

    WE ARE THE MOST TAX BURDENED ECONOMY IN EUROPE, WE ARE INDEED TAXED FROM THE CRADLE TO THE GRAVE AND AS IS OFTEN THE CASE AFTERWARDS TOO WITH INHERITANCE TAX, THE GOVERMENT AND POLITICAL SYSTEM IS ROTTEN TO THE VERY CORE AND ONLY A FRESH START WITH HONEST HARD WORKING PEOPLE IN GOVERMENT WILL MAKE US BELEIVE OTHERWISE. THERE ISNT ONE MAJOR PARTY WHO ISNT TOUCHED BY THE SCANDAL AND JOBS FOR THE BOYS PEERAGES FOR OUR SUPPORTER AND PLENTY OF THE MUSHROOM SYNDROME( FEED THEM MUCK AND KEEP THEM IN THE DARK) FOR THE WORKING MAN, AND WHEN THEY WANT US TO FIGHT THERE PHONY WARS IN DISTANT LANDS THEY HAVE THE AUDACITY TO ASK US TO TAKE ARMS WHILST THEY INVITE TERRORISTS TO OUR COUNTRY UNNDER THE GUISE OF STUDENTS WHO BOMB US AND THREATEN US, BUT WILL THEY TIGHTEN IMMIGRATION AND STOP THE COLONISATION OF GREAT BRITAIN? NOT A CHANCE LETS HAVE 70MILLION RESIDENTE SO WE CAN GATHER IN MORE TAX LETS SELL OUR CHURCHES TO ISLAMIC ORGANISATIONS,,AND WHILE WERE AT IT LET THEM SET UP THEIR OWN BANK.!!

    WELSH DRAGON
    Sunday, 26 July 2009 11:19:57 BST

    THIS GUY IS RIGHT IN BRITON THEY TAX THE DEATH OUT OF US PS EVEN WHEN WE DO DIE AND WE SIT BACK AND TAKE IT IN IT ABOUT TIME WE ALL GREW A BACK BONE AND STOOD UP TO THE GOVERMENT.I FIND IT VERY DIFFICULT TO BELIEVE ANY GOVERMENT WOULD INCREASE TAXES WHEN WE ARE STUCK IN A HUGE RECESSION WITH NO HELP AND ALSO GIVE THE BANKS WHAT THEY WANT BUT LEAVE THEIR PEOPLE STRUGLE ON WITH RIP OFF MORGAGES AND M.P S THAT DO WHAT THEY WANT THE ALLOWANCES SCANDAL IS THE TIP OF THE ICEBERG AND THE HOUSE OF COMMONS KNOW IT.WE NEED HONEST AND HARDWORKING PEOPLE TO RUN OUR COUNTRY NOT JOBS FOR THE BOYS IV ALWAYS BEEN A LABOUR SUPPORTER ALL MY LIFE BUT AS A BUISNESS MAN THE GOVERMENT HAS DONE NOTHING FOR US AND I AM STARTING TO SWAY WHICH IF YOU HAD SAID THAT 5 YEARS AGO I WOULD HAVE LAUGHED AT YOU.WE NEED SWIFT STRICT ACTION NOW WHICH IS STILL WAY TO LATE FOR SOME PEOPLE WE NNEED A PROPER PEOPLES CHAMPION THAY ONLY STICK UP FOR THE PEOPLE AND NOT THEIR DICTATORS COME ON BRITAIN WE NEED TO GET BACK.

    The Debt Collector
    Saturday, 25 July 2009 21:00:20 BST

    Yes, he did cut VAT, but only on certain items; most of which are large value, one off type purchases but very few items which average man needs day to day. VAT has always been a rip-off, as it a tax upon money which has already been taxed through the Inland Revenue. Older people will recall that is was launched to the Public as a "luxuary tax". I do not consider Electricity and Gas a luxuary; so why the VAT on those. And in any case, where Mr Darling reduced VAT on certain items, there was a increase in "duties" which more than compentsated for the VAT reductions. Net result Joe Public is still over-taxed and out of pocket, whilst MPs get massice allowances and expense accounts. God: George Orwell was right !

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