Issue 116
Is the Government Close to Proposing a VAT Cut? www.CLHNews.co.uk
CLHNews
The government is working on plans to cut VAT in a bid to ease the cost-of-living crisis on struggling UK households, according to reports. The Times reported yesterday (June 30) that the government’s chief of staff Steve Barclay had suggested the temporary reduction in the 20 per cent rate of tax in the hope of easing tax bills for millions and reducing the soaring rate of inflation, which is at 9.1% - the highest point since February 1982.
CLHNews
CLHNews
Cutting VAT to 17.5% would reduce the prices we pay pubs, bars, restaurants, hotels in shops, forecourts, and other businesses and would cost the Government an estimated £18billion. Currently VAT is a significant source of income for the Treasury, raising more than £130 billion in the 2021/22 tax year, according to the Office for Budget Responsibility (OBR).
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