MP ASKED TO DEFEND 'FANTASY' VAT CLAIM
June 28, 2009 12:00 AM
Durham City's Labour MP has been asked to defend her claim that the recent 2.5% VAT cut "saves families on average £200 a month". To make that saving, families would have to be spending around £8000 a month.
A local Lib Dem spokesperson said, "This just shows how desperately out of touch our MP is. She may be able to throw thousands of pounds around every month, knowing that the taxpayer will pick up the expenses bill, but most families in Durham are struggling to cope through this recession."
"She must come out and defend this claim. Either she is deliberately misleading local voters or she has failed to grasp how little this VAT cut does for local families.
"The truth is that her Government's VAT cut has made almost no difference to most people. Most food and children's clothes are VAT free anyway. Gas and electricity bills are rated at 5% VAT already so there was no benefit from the change.
"The Liberal Democrats would cut income tax by £700 a year for middle and low earners and ensure anyone earning less than £10,000 a year paid no income tax at all. These measures would produce real savings, not the fantasy numbers being put forward by our MP."
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