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Friday, 25 June 2010 |
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Following this week’s emergency UK budget, Glasgow MSP Bob Doris has called on the Tory/ Lib coalition to reconsider plans to increase VAT to 20%. Mr Doris’s comments come as Save the Children in Scotland warned that the VAT hike could cost the poorest families in Scotland an extra £31 per week. The charity has claimed that the poorest 10% of the population spend 14% of their disposable income on VAT whereas the richest 10% spend only 5% of income.
Mr Doris said: “When you sit down and examine the detail, this budget is anything but fair. We all knew that Labour’s mess had to be paid for somehow but to hammer the poorest in this way is not the right way to do it. I speak to constituents in Glasgow every week who are struggling enough as it is. This budget is a hammer blow to the poorest and will do nothing to aid Scottish economic recovery.
“Save the Children are right to point out just how regressive the extra tax burden is. Tory and Liberal claims that Chancellor George Osborne’s budget was “ tough but fair” are ridiculous.
"What makes this news all the more galling is the publication this week of the Government Expenditure and Revenue Scotland (GERS) report which confirms both the scale of the UK deficit at £49.7bn and that despite the gloom Scotland is running a £1.3 billion surplus and has been in surplus for four consecutive years.
“That’s a surplus we would have right now to spend on public services if Scotland were in control of her own resources. How sickening to see Labour blaming everyone else for this mess and at the same time to be talking down Scotland’s economy despite clear evidence that shows Scotland to have one of the most resilient economies in Western Europe.
“This budget has shown that the cuts to Scotland are slightly deeper and slightly less fair than Labour would have planned. If Labour had put the interests of Scotland and Glasgow ahead of their party interest the UK would have a progressive ‘rainbow’ coalition as offered by the SNP and we would be pushing for fair taxation.
“But Scotland’s real alternative is independence and I think the economic facts speak for themselves. Glasgow would flourish with independence instead of being hammered by a Tory government it didn’t vote for. Labour’s preference for a UK Tory Government will come back to haunt them. ”
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