IMPACT OF THE VALUE ADDED TAX INCREASE IN BIRMINGHAM

That this House condemns the passing of the motion by Birmingham City Council praising the regressive emergency budget; notes that a typical householder in Birmingham aged 65 to 74 years old stands to be 220 worse off annually as a direct result of the increase in value added tax (VAT); believes that the passing of the motion deceives the 1.3 million people of the West Midlands who live in low income households and misrepresents the way in which the budget will impact on their finances; criticises Councillor Jon Hunt and Councillor Roger Harmer for describing the VAT increase as progressive, noting that both the Prime Minister and the Deputy Prime Minister have previously described a VAT increase as regressive; calls for Birmingham City Council to reconsider its motion; and further calls on the Government to bring forward proposals to ensure that its proposed VAT increase does not adversely affect the poorest.