Miliband: VAT rise to hit families - The Press Association

(UKPA) – 4 hours ago

Ed Miliband is to ratchet up Labour's campaign in the Oldham East and Saddleworth by-election with a warning that the rise in VAT is set to cost families £7.50 a week.

On a visit to the constituency ahead of next week's poll, the Labour leader will cite the sales tax hike as evidence that the coalition Government's cuts are going "too far and too fast".

The rise - from 17.5% to 20% - will hinder economic growth, cost thousands of jobs and make it even harder for families to make ends meet when they are already feeling squeezed, he will say.

"Today we start to see the Tory-led agenda move from Downing Street to your street," Mr Miliband will warn.

"At midnight VAT goes up, hitting people's living standards, small businesses and jobs. The VAT rise is the most visible example of what we mean when we say the Government is going too far and too fast, because it's clear that it will slow growth and hit jobs."

Questioning the timing of the increase, Mr Miliband will say people already feel squeezed with petrol prices at more than £1.20 a litre and high inflation levels that are forecast to outstrip earnings.

"So when family budgets are already squeezed now is not the time for a VAT rise to make it even harder to make ends meet," he will say.

"The VAT rise coming in tonight means a hit of £7.50 each and every week. It's no wonder experts say it will cost thousands of jobs. And slower growth means making it harder to get the deficit down. That £7.50 a week adds up to a £389 a year VAT bill for the average family."

The figure is from a Liberal Democrat poster from the last general election campaign, underlining, Mr Miliband will say, the "broken promises" of Deputy Prime Minister Nick Clegg and the wider Government.

The full list of candidates in alphabetical order are: Debbie Abrahams (Labour); Derek Adams (British National Party); Kashif Ali (Conservative); Peter Allen (Green Party); David Bishop (Bus-Pass Elvis Party); The Flying Brick (Monster Raving Loony Party); Loz Kaye (Pirate Party of the United Kingdom); Stephen Morris (English Democrats); Paul Nuttall (UK Independence Party); Elwyn Watkins (Liberal Democrats).

Copyright © 2011 The Press Association. All rights reserved.