VALUE ADDED TAX INCREASE

That this House believes value added tax (VAT) is an unfair and regressive tax which disproportionately affects people on lower incomes, including pensioners and the unemployed who do not pay income tax or national insurance; further believes that the temporary reduction in VAT to 15 per cent. in 2009 was a successful measure in stimulating the economy during the recession; and opposes the unfair increase in VAT to 20 per cent. announced in the 2010 Budget, which will hit the poorest families and pensioners in society hardest.