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VAT Increase

Part of Scottish Executive Question Time — General Questions – in the Scottish Parliament at 11:40 am on 1st July 2010.

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Photo of Peter Peacock Peter Peacock Labour 11:40 am, 1st July 2010

That is indeed shocking news. Does the minister share my dismay that, having campaigned against VAT increases—and a secret plan that the Tories had—the Liberal Democrats have now put up the level of VAT to 20 per cent?

I recognise what the cabinet secretary said about the disproportionate effect on the lowest-earning 10 per cent of families in this country. What impact does he think the VAT increase will have on them?

Does the cabinet secretary recognise that the measure will also push up petrol prices in rural areas—something else that the Liberal Democrats promised to reduce?