"Nick Clegg reveals Tories' £13bn VAT bombshell"

'Liberal Democrat Leader Nick Clegg today revealed the £13.4bn VAT bombshell at the heart of the Tories' tax plans.

Analysis of the Conservatives' proposed tax cuts or reversals shows that they will cost over £13.5bn a year in 2011-12 prices – yet just £100m has been specifically identified to fund them.

This leaves a £13.4bn black hole, equivalent to a 3% rise in the standard rate of VAT. This would mean an extra tax of £389 on the average household.

Liberal Democrats have costed, in full, our proposals for tax cuts. We can tell you, penny for penny, pound for pound, who pays for them.
We will not have to raise VAT to deliver our promises. The Conservatives will.
Let me repeat that: Our plans do not require a rise in VAT. The Tory plans do.

"Their tax promises on marriage and jobs may sound appealing. But they come with a secret VAT bombshell close behind."

"So if you're on an ordinary income, you have a choice. If you want your taxes to rise: vote Labour or Conservative. If you want your taxes to fall: choose the Liberal Democrats." '

8th April 2010 Liberal Democrat Voice


"....but I accept the VAT rise."
Like there's a choice?

Oh well .... we were warned back in August last year

'Labour published a dossier accusing the Tories of proposing £22 billion worth of unfunded promises, and warned that the Opposition would increase VAT and "butcher" public services.
"We know the age-old Tory tax hike is a VAT increase," Lord Mandelson said'
The Independent 1 April 2010

Tories deny plan for 20% VAT rate BBC News 9 August 2009

'The Tories have "absolutely no plans" to increase VAT to 20% if they win the next general election, shadow health secretary Andrew Lansley has insisted.
"We have been very clear about that because we don't want to be in a position where we have to have big tax increases, the effect of which is to stifle the economy."