“VAT cut is not the best way”

This is from the letters page of the Swindon Advertiser. The heading is their’s.

ANNE Snelgrove said in the Advertiser that the government has “cut VAT to put cash into more people’s pockets”. Yet a VAT cut does not put money into anybody’s pocket. It gives you a minor reduction on something you might buy, if you can afford to.

If the government wants to put money into people’s pockets, especially the poor, there is a simple way to do it. Raise the tax starting rate from £6,035 a year to £15,000. This would take 10 million people out of tax and only cost £8 billion a year. This would be an important step towards ending the regressive tax system introduced by the Tories and maintained by New Labour. They could even take the very modest step of raising the highest rate of taxation for those earning over £100,000 a year to 50 per cent. This would only impact on 650,000 out of 31 million tax payers.

MARTIN WICKS Secretary Swindon TUC

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