THE controversial rise in VAT is ‘necessary’ said Conservative and Liberal Democrat MPs who represent the Solihull area.Tory Caroline Spelman and Lib Dem Lorely Burt backed Tuesday’s budget, which included a 2.5 per cent hike in VAT to 20 per cent.
Mrs Spelman, MP for Meriden, above, said: “This was always going to be an austerity Budget – we have never pretended otherwise.
“The rise in VAT is unavoidable, given the state of the nation’s finances bequeathed to us by Labour, but there are many welcome measures which will benefit the whole country.”
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She said: “I admire the way the Chancellor has sought to protect low earners and pensioners and safeguarded poorer families against child poverty. This will help many people in my constituency.”
Cutting corporation tax and axing national insurance contributions for new businesses’ first ten employees was also welcomed by the MP.
“This is crucial for start-up companies and will help West Midlands entrepreneurs,” she said.
A statement from Mrs Burt, MP for Solihull, said ‘that the policies that the people of Solihull voted for are being put into action’.
She said: “There is something positive for most people in this budget.”
Mrs Burt praised the raising of the income tax threshold and said cuts to child tax credits for the better off will ‘allow the money to be targeted at those who really need it’.
She said: “I think, as Liberal Democrats we can be proud of the influence we’ve had on this budget.”
The statement said the VAT rise ‘may be hard to bear’ but was ‘necessary’.
Mrs Burt said: “The structural deficit the coalition government has been left to deal with meant that some tough decisions were inevitable.”
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