"A Budget VAT attack would bludgeon UK consumers and businesses,"
"VAT exemptions are key for countless essential services like healthcare, education and housing. Removing them risks distorting behaviour, adding admin costs and sparking a public backlash that far outweighs any fiscal benefit."
"drive up prices and reduce access for lower-income families"
"VAT reform should be guided by clarity, efficiency and fairness - not fiscal desperation."
Treasury officials are considering broadening VAT to previously exempt services including private tuition, financial advice, postal services, burials and cremations, private healthcare, property rentals, and non-profit sport or education. Such measures could deliver a short-term boost to Treasury coffers but would likely be inflationary, regressive and politically toxic. Removing exemptions would distort behaviour, erode affordability for essential services, add administrative costs and spark public backlash. Expanding VAT to private tuition and non-profit sport would drive up prices and reduce access for lower-income families. Sole traders and small firms would face new compliance burdens. Applying VAT to investment and advisory services would widen the financial advice gap.
Read at Business Matters
Unable to calculate read time
Collection
[
|
...
]