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Reduce income Tax for Low Paid not VAT – A Liberal response to Michael Gove

Can we make a constructive alternative to Michael Gove’s call to reduce VAT to boost the economy post Brexit?

Setting aside this contradicts all his measures as a Minister to support austerity on the basis we needed to reduce the public spending requirement

The best way to boost the economy, pound for pound, would be a significant rise in tax thresholds.

By putting more disposable income in the hands of the low paid it would be cost effective than reducing VAT.

It would help boost the incentive to work for low paid and those on flexible hours.

It would help those regions like the South West, Wales, Scotland and Merseyside and other areas of relatively low earnings.

Regardless it does show that endless austerity is counterproductive and holding back the economy.

Cllr Steve Radford
President of The Liberal Party