Qualified advisers answering your
Financial Questions
call 0800 092 1245

Is the government looking to increase VAT in the future?

The Conservative party have unearthed legal documents which were registered with the House of Commons in relation to a potential increase in VAT in 2010/11. It appears that Gordon Brown and Alistair Darling gave serious consideration to an increase in the rate of VAT after the next election although they have since suggested this plan was rejected.

The documents show a rate of 18.5% was or is under consideration which would plug the potential black hole in yesterday's pre-budget report. The Tories believe this is the secret tax bombshell which the Labour Party has been trying to keep from the public domain although it looks as if they have been caught out.

This is a major concern for the Labour Party who had promised a new period of transparency and openness which appears to have gone by the wayside of late. If the Tories can make the most of this VAT bombshell they should be able to increase their lead over the Labour Party in the short to medium term. One thing is sure, the next general election will be centred on taxation and spending and is set to be one of the dirtiest seen in the UK for many years.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details