New Year slow set to become worse thanks to 20% tax
The VAT increase which came into force today is set to hit the restaurant and tourism industry at a crucial time, especially in the Dee Valley where these businesses form such a crucial part of the local economy.
Plaid Cymru’s Candidate Mabon ap Gwynfor says that the New Year is traditionally a difficult time for tourism and eateries in areas such as Llangollen and the tax hike risk making matters worse.
Mabon ap Gwynfor says that it was naïve to think installing a 20% VAT tax threshold so soon into the economic recovery would not threaten the very existence of some tourism businesses in the area, a sector that is often the first into bankruptcy during tough economic times.
Mabon ap Gwynfor said that the Conservative and Lib Dem approach was about putting short term proposals in place at the expense of the longer term ambitions of supporting the tourism industry and the economic support the sector gives to financial recovery.
Mabon ap Gwynfor said:
“The tourism industry is a key employer in this area. We have a number of excellent restaurants and gastro pubs who purchase some of the finest foods from local producers. All this is threatened by this unnecessary VAT rise.
“It is small individual businesses, like the farms, the butchers, and the many pubs and restaurants that will help drive economic growth and increase employment prospects in this area. We should not be putting obstacles in their way. People need money in their pockets to spend locally. I fear that the 20% VAT will hit this sector hard.
“The UK Government are penalising the lowest earners and small business owners while allowing the very rich to get off scott-free. George Osborne, the Chancellor himself, avoids paying full tax because of an off-shore bank account; Vodafone, Boots, Tescos and many more manage to avoid paying tens of millions in taxes each year, and are more than happy to take our hard earned money, yet this Tory Lib Dem Government expects us to pay so that they can enjoy their little luxuries. This Tory Lib-Dem Government needs to get its priorities in order.”
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