Support 100 years of independent journalism.

  1. Politics
15 June 2010

Simon Hughes fires a warning shot over VAT

Lib Dem deputy leader warns Osborne not to raise “the most regressive tax”.

By George Eaton

Simon Hughes, fresh from his success in the Lib Dems’ deputy leadership contest, has just made a highly significant intervention on tax. In an interview with the Daily Politics, the left-leaning MP signalled his unambiguous opposition to any rise in VAT, which he accurately described as “the most regressive tax”.

He said:

I hope that the Chancellor’s hearing the voices that say VAT is not the right tax to change in the Budget next week.

There is no good reason why Hughes should not get his way. Ignore George Osborne’s flat-out lie that “things are worse than we thought”; the latest figures confirm that he will be able to eliminate the bulk of the structural deficit without any unplanned tax rises.

Select and enter your email address Quick and essential guide to domestic and global politics from the New Statesman's politics team. A weekly newsletter helping you fit together the pieces of the global economic slowdown. The New Statesman’s global affairs newsletter, every Monday and Friday. The New Statesman’s weekly environment email on the politics, business and culture of the climate and nature crises - in your inbox every Thursday. Your guide to the best writing across politics, ideas, books and culture - both in the New Statesman and from elsewhere - sent each Saturday. A newsletter showcasing the finest writing from the ideas section, covering political ideas, philosophy, criticism and intellectual history - sent every Wednesday. Sign up to receive information regarding NS events, subscription offers & product updates.
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.

Any tax increases (and spending cuts) above and beyond those planned by Alistair Darling are purely ideological. Yet Conservative voices continue to suggest that a 1 per cent rise in VAT, likely to be announced in Tuesday’s emergency Budget, is both desirable and necessary.

Either way, Hughes, with the support of his party’s grass roots, has laid down a clear marker. Should Osborne choose to ignore it, he will risk dividing the Lib Dems and, perhaps, the coalition, too.

Special subscription offer: Get 12 issues for £12 plus a free copy of Andy Beckett’s “When the Lights Went Out”.