Ooops - Possible secret tax blunder by the labour mob
Discussion
http://uk.news.yahoo.com/5/20081126/tuk-govt-denie...
A document mistakenly published on the internet said the tax would rise to 18.5% in 2011 to help pay for an upcoming 13-month reduction from 17.5% to 15%.
The Treasury said the draft background note was drawn up last week ahead of Monday's pre-Budget report but should never have seen the light of day.
Chancellor Alistair Darling had considered the proposal but rejected it, a spokesman said.
He insisted there were no current plans for an increase in VAT rates.
But Conservatives claim the paper was proof that Labour was planning to increase taxes following the election expected in 2010.
David Cameron said it would cost every household in the UK an extra £200 on average.
The row blew up ahead of a debate in the House of Commons later today on the dramatic measures announced on Monday.
They included a £20bn fiscal stimulus to restore growth, a new 45% top rate of income tax for high earners and a 0.5% increase in National Insurance in 2011.
The Tories claim there is a £10 billion "black hole" in the Government's finances for 2011-12 set out in the PBR.
And Mr Cameron suggested that Gordon Brown and Mr Darling may be secretly planning to use a VAT hike to fill the gap.
Treasury minister Angela Eagle dismissed his claim as "scaremongering".
"It is a pure administrative error on the part of HM Revenue and Customs," she said.
But Liberal Democrat Treasury spokesman Vince Cable said: "The Government has been at best incompetent and at worst highly duplicitous.
"At a time of economic emergency we need a clear-headed Government with a sound economic strategy, instead we are seeing tax policy being made up on the hoof."
of course we believe you....
A document mistakenly published on the internet said the tax would rise to 18.5% in 2011 to help pay for an upcoming 13-month reduction from 17.5% to 15%.
The Treasury said the draft background note was drawn up last week ahead of Monday's pre-Budget report but should never have seen the light of day.
Chancellor Alistair Darling had considered the proposal but rejected it, a spokesman said.
He insisted there were no current plans for an increase in VAT rates.
But Conservatives claim the paper was proof that Labour was planning to increase taxes following the election expected in 2010.
David Cameron said it would cost every household in the UK an extra £200 on average.
The row blew up ahead of a debate in the House of Commons later today on the dramatic measures announced on Monday.
They included a £20bn fiscal stimulus to restore growth, a new 45% top rate of income tax for high earners and a 0.5% increase in National Insurance in 2011.
The Tories claim there is a £10 billion "black hole" in the Government's finances for 2011-12 set out in the PBR.
And Mr Cameron suggested that Gordon Brown and Mr Darling may be secretly planning to use a VAT hike to fill the gap.
Treasury minister Angela Eagle dismissed his claim as "scaremongering".
"It is a pure administrative error on the part of HM Revenue and Customs," she said.
But Liberal Democrat Treasury spokesman Vince Cable said: "The Government has been at best incompetent and at worst highly duplicitous.
"At a time of economic emergency we need a clear-headed Government with a sound economic strategy, instead we are seeing tax policy being made up on the hoof."
of course we believe you....
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