In an article on the Compass website LYL Chair, Tom Copley, has welcomed press reports that the Pre-Budget Report will include a VAT cut and tax rises for the rich.

He writes: "Today Alistair Darling has an opportunity to radically alter Labour's tax policy. I hope it's an opportunity he grasps with both hands.

Reports over the weekend suggest that the two key tax changes in the Chancellor's pre-budget report will be a 2.5% cut in VAT combined with a new top rate of tax set at 45% for earnings over £150,000. Both these changes should be warmly welcomed by progressives. Some have complained that these proposals do not go far enough, but we must not underestimate the significance of what is being proposed: these policies, if implemented, will finally represent the start of a journey away from Thatcherite taxation policy. If the Government stays firm, we could be witnessing the beginning of the end of neo-liberal tax orthodoxy, if not in Britain then certainly within the Labour leadership."

You can read the full article here.

Photo (c) FreeFoto.com

Labels: economy, taxation