With so many people worrying about how they will afford life as prices rise, we are calling for an emergency cut to VAT to protect households from soaring bills. Our proposal to reduce VAT from 20% to 17.5% for one year would save local households an average of £600.
An emergency cut to VAT would ease the squeeze on households and boost spending on the high street. It could be introduced quickly and easily by the Government for one year and yet the Conservatives are moving ahead with tax rises and cuts to the support currently provided to those in the lowest-paid jobs; Liberal Democrats oppose the rise in National Insurance and the cut to Universal Credit for those on low incomes.
The Conservatives’ NI rise puts more pressure on household budgets. And it breaks a promise they made at the last General Election.
Committed to green innovation, the Liberal Democrats also plan a £9billion home insulation fund to cut carbon emissions and heating bills too. And a new windfall tax of mega-profits of oil and gas companies would raise cash to directly reduce utility bills for millions.
Locally, we want Lambeth Council to use its powers to enforce standards in private-rented homes to push up energy efficiency. This would have the dual benefit of reducing household bills and protecting the planet.