VAT increases and weeping reptiles

VAT, the tax politicians most keenly wanted to avoid
talking about during the election, was raised by 2.5% last night. The new rate is in line with the other major countries of Europe but it is still a tax increase which affects every voter in the country. Predictably therefore moral outrage and crocodile tears have flowed from the Labour ranks in an effort to capitalize on its potential unpopularity. The cry of ‘The wrong tax at the wrong time’ is certainly a good sound bite but does that mean a Labour government would have kept VAT at 17.5%?
Certainly not.

I’m sure Ed Milliband would find a way to deny that assertion, but not many could or indeed should take such a denial seriously. The estimated revenue from the increase is 13 billion pounds, the difference between the two parties economic plans going into the election was never that substantial and weren’t Labour the party which advocated more tax rises and less spending cuts anyway? The truth is politicians from all parties realized that an increase in VAT was going to be a major tool in reducing the country’s spending deficit and Ed Milliband was no different. During the election the economic spokesmen from the two most important parties maintained the same line ‘We have no plans to increase VAT’ but also maintained a stubborn refusal to rule it out. It’s sad that our politicians cannot be honest with us, but had either of them broken ranks and delivered the truth they would have paid for it at the ballot box, so can we blame them?

One party however did bring up the issue of VAT during the election, whilst the other two major parties did their best to avoid it, the Liberal Democrats. I read an article recently in a left-wing publication stating that the Lib Dems would be haunted by the image of their leaders in front of a poster decrying the Conservatives for planning to increase VAT, when they are now in a coalition government doing just that. What the writer of the article overlooked however is that when questioned during the election if he would therefore rule out a rise in VAT Vince Cable replied ‘We have no plans to increase VAT’.

Populist opportunism like this characterized the Liberals election campaign and for a while looked like a strategy which might deliver them second place ahead of Labour in terms of the popular vote. It is therefore no surprise that Ed Milliband is adopting similar tactics to revive his party’s fortunes. We should expect more from the leader of the opposition though, especially one who was part of a ruling government less than a year ago. His party should expect more from him too; alternative policies for how the country should deal with its deficit, not just blank pages, and crocodile tears.