The VAT hike- a particularly nasty attack on pensioners
4th January 2010
New data from the House of Commons Library shows how pensioners will lose out because of the VAT hike.
According to the House of Commons Library, in 2008, the typical pensioner household, where householder is aged 65-74, spent £353.70 a week. This would rise to £358.00 after the VAT increase if the same goods and services were bought. This is an increase of around £220 a year.
Commenting on the data, Alan Whitehead MP said:
“This is a particularly nasty attack on pensioners - because the government knows how much pensioners’ cost of living will go up by, but is taking no action to raise pensioner allowances to compensate them.”
He added:
“There is a real danger that raising VAT now will undermine the economic recovery. The Office for Budget Responsibility forecasts that the VAT rise will reduce the level of real GDP by 0.3% - and last year the British Retail Consortium warned that raising VAT would cost up to 163,000 jobs.
“To increase costs for every business, every public service and every family at a time when the economy is still struggling is still grossly irresponsible.”
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