VAT RISE IS WRONG.

In this era of 'The New Politics', one might have hoped that Ed Milliband would have been a little more forthcoming about his alternative to the Government's VAT increase. Instead, Milliband minor simply whines that the increase coming into effect tomorrow is 'the wrong tax at the wrong time'.

Given that it was Mr Milliband's Government, of which he was a compliant member, which caused the enormous deficit that we now face through its profligate spending, it really is laughable that his only contribution to the deficit reduction debate is a negative one. I don't want VAT to rise, any more than I want any tax to rise, however, the legacy of the last Labour Government is such as to make tax rises and spending reductions essential. Of course, a rise in VAT will hit families, including those who are part of the so-called poor as well as those who are part of the so-called rich, but it is the families at the poor end of this equation that have been the main beneficiary of Government largesse in recent years, entirely paid for by anyone with a few coppers in their pockets. Income tax thresholds have risen much more slowly than either earnings or inflation and the upper limit, that determines when the 40% rate kicks in, has been held back to such an extent that vast numbers of people are now caught by it even though their salaries are modest; national insurance has been increased and savers have been horribly penalised by the artificially low rates currently on offer. On the other side, the 'poor' have too often had no incentive to seek work as the state pretty well guarantess them a reasonable income through its maze of benefits and less well-off families have benefited enormously from the insane tax credit system. 

If Milliband disagrees with this he should set out his alternative strategy, otherwise he should keep quiet. For my part, I say stop the benefits and cut all taxes, including VAT. Benefits should be only for those who can't find work or who are genuinely in need; taxes should be paid in order to allow the state to provide essential services, not for it to satisfy every whim of every bleeding heart. Sadly, neither suggestion is likely to be adopted as all our politicians are far too wedded to the notion of state support for all and sundry, whatever they might say in public.