Brown’s ‘tax bombshell’ of higher National insurance, council tax & VAT : Graham Evans, Conservative MP for Weaver Vale
Graham Evans, Conservative MP for Weaver Vale

Brown’s ‘tax bombshell’ of higher National insurance, council tax & VAT

Prospective MP expresses concern at effect of Labour’s tax plans on Weaver Vale

Cllr Graham Evans ,Prospective MP for Weaver Vale, today responded to the Government’s new tax and spending proposals – the so-called Pre-Budget Report – by warning of Labour plans for higher taxes and record levels of national debt included in the small print.

·         Above inflation hikes in council tax are to be forced on local authorities. The Government is planning for a 4.5% increase in council taxes, which would push up the typical bill up by £62 a year on family homes from this April.

·         National Insurance will be increased for workers and for local firms. This jobs tax will discourage businesses from hiring staff, and mean anyone earning £20,000 a year or more will be worse off.

·         National debt will hit £1,000,000,000,000 (one trillion pounds), forcing even higher taxes in due course to pay back the nation’s overdraft.

·         Plans are being drawn up by the Government to increase VAT to 18.5% after the next general election, and Gordon Brown is even considering a hike to 20%. This would add £500 a year to the shopping bills of families.

By contrast, Conservatives are advocating a series of positive measures to help beat Labour’s recession, including:

·         Freezing council tax for two years by cutting wasteful Government spending.

·         Reducing employment costs for small businesses by cutting National Insurance and a tax break for new jobs.

·         Getting credit flowing by guaranteeing lending to business.

Graham  said: “Labour’s are offering tax cons, not tax cuts. Gordon Brown’s tax plans aren’t about helping our economy; they’re to help him cling to power. I am very concerned about the triple whammy of record levels of debt, higher council tax and higher National Insurance on families and firms in Weaver Vale. And further large hikes in VAT could be around the corner.”

NOVEMBER 2008