Libdem activists hammer Cable over VAT rise


by Sunny Hundal    
12:53 pm - June 24th 2010

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Libdem activists are angry with the highly regressive budget, despite media reports that they would remain loyal to their leaders.

OVer at LibdemVoice, Vince Cable publishes an article arguing: ‘Why the VAT rise had to happen‘.

But the response is overwhelmingly negative and dismissive of the argument put forward by Cable.

Some examples:

Kate
Nonsense. VAT is regressive. Saying black is white doesn’t make it so. What was wrong with National Insurance? Couldn’t you cut corporation tax to, say, 26% instead of 24%?

…

Foregone Conclusion
Hmmm… I would recommend a quick browse of this pdf from the IFS, which shows us that it’s a bit more complicated than that

http://www.ifs.org.uk/budgets/budgetjune2010/browne.pdf

…

Mike
Will Mr Cable be denying the rumour (from “senior Lib Dems” according to the Financial Times, and from Ed Miliband and Peter Hain talking about the Lib-Lab discussions) that he didn’t believe cuts should be delayed even as he said it to voters? If not, what were the reasons for this other dishonesty on top of VAT?

…

Kerrie Furlong
I have voted Lib Dem for the last four elections, which is all my voting life. I will never vote Lib Dem again until Nick Clegg has gone. Though not a member, I have in the past and did at the last election help deliver leaflets through letterboxes. …
How the hell has it come to this and how the hell did that become leader of our party?
I actually live in Cleggs constituency and will campaign at the next election to get rid of him.
Maybe once he has gone, we will get our party back.

There were however some supportive voices too.

Andrea Gill
Say what you want about VAT (and the increase MUST be viewed in balance with the measures in the budget aimed squarely to protect the poorest in society) is at least a tax that cannot be evaded.

It was also interesting that 28% CGT was the level estimated to bring the most revenue, as Danny Alexander explained on Newsnight last night – this was based on advice from all Treasury officials. Funny that Labour never took notice of this advice…

It will be interesting to see what the polls show in coming days, and the sentiment of the party as the budget cuts start hurting families.

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About the author
Sunny Hundal is editor of LC. Also: on Twitter, at Pickled Politics and Guardian CIF.
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Reader comments


1. paul barker

Hang on, if I come on here dissing Labour does that make me a Labour activist ? I skimmed the 90+ comments on the Cable article & 2/3rds were either supportive of the Budget or made clear that they werent Libdem.
I can well see why so many Labourites are angry with the Libdems but please stop trying to project your feelings onto us.

2. Duncan Stott

How can we be sure that the people commenting on Lib Dem Voice are Lib Dem activists?

3. Sunny Hundal

I skimmed the 90+ comments on the Cable article & 2/3rds were either supportive of the Budget or made clear that they werent Libdem.

I suggest reading a bit more closely then.

4. Mr S. Pill

Lib Dems are quite right to be annoyed. Anyone remember this? Granted, it was all of ten weeks ago…

5. margin4error

We could assume everyone on a Lib Dem page are Labour supporters and Tories. And we could assume that everyone on Liberal Conspiracy are actually fascists and conservatives (small c)

But that just seems childish.

Having read the article and a lot of comments (I lost interest after around 70) it seemed like a largely lib dem discussion of a lib dem policy.

And from what it seems, the key issue faced is simply that people know Vince is lying. They know he was either out-and-out lying during the election when he set out how regressive and unnecesary a VAT rise was – or he is lying now when he makes the arguments for a VAT rise.

And that’s probably what will hurt Lib Dems supporters whether they leave or not.

They are being asked to back a largely Tory government’s mantra and policies in principle – rather than being told “It’s awful, but we have to give the Tories what they want so we can have ministers”

Maybe a tory minority government would have been a more comfortable fit after all.

6. Charles Wheeler

“Say what you want about VAT (and the increase MUST be viewed in balance with the measures in the budget aimed squarely to protect the poorest in society)”

The poorest in society have just had their benefits cut on top of a rise in regressive indirect taxes – wake up at the back

” is at least a tax that cannot be evaded.”

Tell that to my plumber, builder, gardener, local shopkeeper, mechanic, … should I go on?

7. Mike Guillaume

Nobody loves taxes, even though liberals all have to admit they are necessary to some degree and to a certain level.
That said, VAT (a tax invented by a French banker, lest some forget) is probably the silliest and most unfair tax ever invented. Taxing value added! How silly and anti-economic. And anyone buying the same goods is charged with the same tax amount, regardless of their income and purchasing power.

This and other measures vindicate my position expressed here even before the coalition was in place: the Lib Dems should never have embarked on that and left it to a minority Tory government with approval of some measures à la carte instead of having to swallow the insipid conservative menu.

Where can the progressive liberals be heard? For example by replacing the spending OR cutting dilemma with a more subtle WHERE to spend and WHAT to cut discussion.


Reactions: Twitter, blogs
  1. Liberal Conspiracy

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  2. JamieSW

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  3. amol rajan

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  4. Allister Hayman

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  5. Paul Sandars

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  6. sunny hundal

    Libdem activists hammer Vince Cable over VAT rise http://bit.ly/cB6vK0 (there may be trouble ahead…)

  7. amol rajan

    RT @sunny_hundal: Libdem activists hammer Vince Cable over VAT rise http://bit.ly/cB6vK0 (there may be trouble ahead…)

  8. House Of Twits

    RT @sunny_hundal Libdem activists hammer Vince Cable over VAT rise http://bit.ly/cB6vK0 (there may be trouble ahead…)

  9. Scoopler WTF

    @PatriciaAntigua Libdem activists hammer Cable over VAT rise | Liberal Conspiracy http://scp.ly/C3C6 [is wrong with you?]

  10. Elly M

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  11. Cracks in the Coalition – but not because of the Lib Dems | Amol Rajan | Independent Eagle Eye Blogs

    [...] that tensions between the Lib Dems and the Tories – some of which Sunny Hundal documents here – are going to be a major and running theme through this Parliament. But [...]

  12. Annie B

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