Clause 66 — VAT: refunds to certain charities

Part of Bill Presented – in the House of Commons at 2:47 pm on 25th March 2015.

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Photo of David Gauke David Gauke The Financial Secretary to the Treasury 2:47 pm, 25th March 2015

The previous Government brought VAT back up. We know from his memoirs that the then Labour Chancellor of the Exchequer, Mr Darling, believed that a Labour Government after 2010 should increase VAT. A Budget document was even published showing VAT going up to, I believe, 18.5%. I know that that was published by mistake, but it clearly shows that serious consideration was given to that. The previous Labour Government recognised that taxes would have to increase. They had proposals to increase employers national insurance contributions, or the jobs tax. Given that there is such uncertainty about the Opposition’s plans for what they would do in government, the question is whether they would rule out increasing employers national insurance contributions.