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Labour build coalition against the "VAT bombshell"

Southampton’s Labour MPs - John Denham and Alan Whitehead - have written to Liberal Democrats councillors across Hampshire urging them to oppose the Coalition Government’s plan to raise VAT to 20%.  The letter criticises the Lib Dem leadership for u-turning on their support of the Tories’ plan to increase VAT and invites local Liberal Democrats to join Labour’s campaign against the VAT rise, and, if they feel strongly, join the Labour Party.

John Denham said, “Lots of Liberal Democrat voters are disappointed that Nick Clegg chose to put power before principles and join the Tories in coalition, and I’m sure many Liberal Democrat councillors feel the same – it can’t be much fun for them taking the flack from their constituents over their leaders’ decision to prop up the Tories.”

Alan Whitehead added, "When offered the choice between standing up for what he, and his party, believed in, or becoming Deputy Prime Minister, Nick Clegg shamelessly sold out.  We’re offering local Liberal Democrats the chance to take a stand and oppose the unfair VAT rise.”

John and Alan were recently joined by Labour leadership hopefuls Andy Burnham, Ed Balls, Ed Miliband and David Miliband in the campaign against the VAT bombshell.  Labour activists from across Hampshire decended on Lib Dem Minister Chris Huhne's seat of Eastleigh, calling on the MP to keep his election promise about not raising VAT.

During the election Chris Huhne famously said, "We will not have to raise VAT to deliver our promises...let me repeat that: Our plans do not require a raise in VAT."  Yet his party is now shamlessly backing the Tories' plan to raise VAT.

The text of the letter to Lib Dem councillors reads:

“During the General Election, your party rightly campaigned against the reckless and regressive measures in this budget, specifically the raising of VAT.  Your party Leader was photographed in front of a poster opposing a VAT increase.                       

During the election Chris Huhne, Liberal Democrat MP for Eastleigh (and now Secretary of State for Energy and Climate Change), said, “We will not have to raise VAT to deliver our promises.  Let me repeat that: Our plans do not require a rise in VAT.”                               ‘.

I am sure you will be as dismayed as I am that Liberal Democrat MPs are now going back on the promises they made to the voters.  Nothing that has happened since the election justifies the u-turn in Liberal Democrat policy.

Everyone will be hit by the VAT rise, with pensioners in particular left without any new measures to help them meet increased costs.

The Institute of Fiscal Studies confirms that as a result of the VAT rise, the less you have, the harder you will be hit, with the poorest 10% seeing their income fall by twice as much as the richest 10%.

Your party has always wanted to be regarded as a progressive party that stands for fairness. You will know that if the VAT increase is implemented it will no longer be possible to claim that the Liberal Democrats are either progressive or fair.

I do urge you to do everything possible to prevent VAT being increased as the coalition plans by persuading fellow Liberal Democrats to oppose it.

By the time you receive this letter, the VAT rise may have been confirmed by Parliament, but there will still be time to prevent its implementation in January 2011.

If, however you recognise that Liberal Democrats MPs have mislead and let down voters then please do join the Labour Party where you can continue the fight for fairness and progress.”

Promoted by Ray Collins, General Secretary, the Labour Party, on behalf of the Labour Party, both at 39 Victoria Street, London, SW1H 0HA.
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