Wednesday, 14 July 2010

McMillan Criticises Cairns on VAT Vote

Stuart McMillan MSP has criticised David Cairns for abstaining from a vote in Westminster on raising VAT which could have brought relief for households and businesses in Inverclyde.
Mr. McMillan said;
“It is astonishing that David Cairns and his Labour cronies did not vote against the VAT rise with only the SNP standing up for Scotland. Not only do Labour MPs prefer a Tory UK to an independent Scotland, they are now sitting on their hands when Tory taxes hit households and businesses.
“Labour's lack of support for even more taxes on fuel and household goods will not be forgotten. This is unforgivable in the eyes of people in Inverclyde already struggling with financial recovery.
“The poorest families in Inverclyde will be hardest hit with some estimates suggesting their VAT bill will go up by £31 a week. Unemployment benefit will be reduced in real terms, tax credits cut and massive pressure put on housing benefit, particularly in areas where rented housing is expensive.
“Increasing VAT will put a strain on our public services at a time when they need support more than ever. The NHS in Scotland, for example, will be hit by a £26m hike in the VAT bill.
“The VAT increase also piles the pain on businesses already struggling through Labour’s recession – taking spending power out of the economy and exacerbating cash flow problems.
“The Tories and the Liberals have already endangered the recovery by cutting too far and too fast. The decision to increase VAT is a political choice and it is a wrong choice. It is incredible to believe David Cairns is content to sit back and allow this to happen to people in Inverclyde”.

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