Catherine McKinnell MP, Labour’s shadow Treasury minister, responding to TUC research showing that low-paid workers will lose up to four times more per year from the government’s VAT rise than the gain from a higher personal allowance, said:
“David Cameron and George Osborne give with one hand, but take much more with the other. For all their boasts about small rises in the personal allowance, for millions of families this is massively outweighed by the government’s VAT rise.
“The Budget must cancel next month’s tax cut for millionaires and instead cut taxes for people on low and middle incomes. A temporary cut in VAT and bringing back a lower 10p starting rate of tax would be the best way to do this, but any fair and substantial tax cut for people on low and middle incomes would be better than nothing.”