VAT hike hits Clegg popularity
Britain’s deputy prime minister Nick Clegg is facing growing unpopularity within his party and amongst supporters over Budget increase in value-added tax to 20 per cent.
The Liberal Democrat party, which is the junior partner in the coalition government with the Tories, saw unprecedented highs in support during the election campaign. H
owever, the support for LibDems has now slumped to 16 per cent, according to an ICM survey for the Sunday Telegraph. The party had seen its support rise to a high of 31 per cent during the election campaign. The 16 per cent rating is the lowest support the LibDems have seen since January 2009.
However, the Conservative Party has increased its support by two points to 41 per cent and the Labour Party, which is in the process of choosing its new leader, has jumped four points to 35 per cent. The survey revealed that voters generally were in favour of tough measures in the emergency Budget, but were opposed to increase in VAT. The ICM found that 80 per cent voters supported reduction in child tax credits, 78 per cent supported proposed tax on banks and 68 per cent on cuts in housing benefit. However, 60 per cent of the voters were against the increase in VAT from 17.5 per cent to 20 per cent.
The Liberal Democrat party has opposed any increase in VAT during the election campaign and has been trying to placate members and supporters over the hike.
Business secretary Vince Cable, who till May was the deputy LibDem leader, admitted on Sunday that LibDems were trying to “score points” over the Tories by opposing VAT increase during the election campaign. “We were trying to score a point against the Conservatives, if you like. Okay, well that was in the election. We have now moved past the election,” Mr Cable told BBC’s Andrew Marr Show. Mr Cable denied that the emergency Budget would adversely affect people with low incomes, saying that increase in the income-tax threshold would offset the impact of the VAT rise.
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