Coalition Tax on Giving Condemned

Telford MP David Wright has condemned the coalition Government for imposing a VAT increase on hard pressed charities as well as the most vulnerable in society. Mr Wright said he was “disgusted” at the actions of Conservative and Lib Dem MPs who opposed a move to exempt charities from the VAT increase brought in by the budget.

David Wright MP said:
“VAT is a regressive tax and hits poorer people harder than those who can afford to pay higher taxes, but imposing it on charities who are struggling to raise money is nothing short of a disgrace. Lib Dem MPs even campaigned against an increase in Vat just a few short months ago – how things change.

“Every pound charities have to pay over in increased VAT is a pound not being spent supporting the excellent work they do.

“When the Labour Party was in Government we reduced the Tory VAT on fuel and would not have increased it in Government, but this coalition of Tories and Lib Dem apologists has shown its true colours. People who voted against having a Conservative Government – the vast majority of the country – will be rightly outraged at this attack on the most vulnerable in our society.”

Last night, the House of Commons voted on an amendment to the Finance Bill tabled by Shadow Chief Secretary to the Treasury, Liam Byrne MP which would have made a massive difference to the very important third sector.

The move to exempt charities from the government’s VAT rise in January would have saved important community groups from £150m in additional taxes at a time when charity income is often down but service users are up because of the recession.