VAT is a mildly progressive form of taxation claims Vince Cable as supporters abandon the Lib Dems in droves

According to a poll published today, 48% of Lib Dem voters are now less inclined to back that party, and they  say that their change is as a direct result of the VAT increase.  How has Principled Vince responded.  He writes “No decision to raise tax is taken lightly, but VAT is more contentious than most. One reason is that VAT is often denounced as if it were the most regressive tax of all. However, the truth is more nuanced. As a proportion of expenditure, it is in fact mildly progressive”.

Yesterday I wrote of Cable: “The sight of Vince Cable bumbling and stuttering through feeble and half-hearted defences of his party’s total sell-out of his policies, his sound economic analysis and his principled stand on the banks, is pitiful.  Actually it is beneath contempt”.

Appearing on the Andrew Marr programme, as I write this, Cable dismissed the VAT Bombsell allegation made by the Lib Dems against the Tories “That was during the election campaign” and that the Lib Dems are now in coalition.

I wonder how Cable will justify the latest analysis of the ConDemNation budget.  It shows that the measures will hit the poorest six times harder than the rich.  The poorest 10%, those with an annual income of less than £14,200 will experience a 21.7% cut.  The richest, those with an annual income of over £49,700, with experience just a 3.6% cut.

How could someone who was so right about the banking crisis become so wrong about the impact of cuts on ordinary people?

6 Responses

  1. Lib dems are dead – Clegg sold them out on PR, this is the last time they will ever be anywhere near power.

    On the back of this VAT change, you also have to consider that…

    “total public spending is not facing any cut at all. In fact, it is projected to increase from £697bn this year to £758bn in 2015-16, a rise of 9%.”

    As public spending overall isn’t being cut – where is all the extra money raised actually going?

  2. It would be one thing to replace England’s manager for somebody more inspiring but the inescapable conclusion this afternoon is that if more of the England team had voted Green, they would have gained more of a sense of confidence to counter Germany, where the Greens have had a strong position for so long.

    If the English team is to get anywhere in four years’ time, all its supporters would do well to think about voting Green.

  3. BPB, as a Labour member who disagrees with the conservative government on most things including the VAT rise. Even I am getting a tad tired of you attacking Lib Dems for obeying their whip. We all think they are being disingenuous, but part of what is special about your blog is that it is local, you just sound like Tom Harris.

  4. Can we agree on something?

    The referendum on voting reform is a stitch up because it asks the wrong question.

    AV is just FPTP with a slightly flexible post… It is not PR and a referendum will kick voting reform into the long grass for a generation (or two).

    I am primarily a democrat and think the peoples will should be the first and only influence on government.

    We, the british public, must not let this bogus referendum go ahead until the question is agreed.

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