David Hanson MP, Labour’s shadow treasury minister, said ahead of the Finance Bill:
“As part of our Opposition Day motion last week, Labour MPs voted in the Commons to temporarily reduce VAT until strong economic growth returns, in order to get the stalled economy moving again and so help reduce the deficit for the longer-term.
“We have tabled an amendment to the Finance Bill which again calls for a temporary VAT cut until the economy returns to strong growth and we hope it will be selected for debate, in order to keep the pressure on the Tory-led government to listen to our proposal.
“Alongside our call for a temporary cut in VAT, we have also tabled an amendment calling on the government to produce and publish to Parliament an assessment of their mistaken VAT rise on economic growth. In the six months since the spending review and VAT rise the UK economy has seen no growth at all, we have seen a significant fall in consumer confidence and last month a sharp fall in retail sales. It’s time the government realised this VAT hike was the wrong tax rise at the wrong time.”