Sunday 27 June 2010

Half of Lib Dem voters ready to defect after VAT rise

Nick Clegg is suffering a fierce public backlash over the coalition's VAT rise, with almost half of Liberal Democrat supporters saying the tax U-turn makes them more likely to desert the party.  A YouGov/Brand Democracy survey shows 48% of those who voted Lib Dem at the election are now less inclined to back them again as a direct result of the increase in VAT from 17.5% to 20%.

A distant memory: the Lib Dem election campaign poster

Clegg campaigned vigorously against a VAT rise in the election campaign, warning of a Tory VAT "bombshell". But since he signed off on Tuesday's emergency budget which announced an increase from January next year, the Lib Dem leader has argued that a rise was "unavoidable" because the public finances were in a far worse state than the new government expected. The poll results will spread unease in party ranks as MPs prepare for a Commons vote on Tuesday on George Osborne's emergency package of cuts and tax increases. They will also raise fears about the coalition's ability to survive for a full parliament as the austerity programme tests the patience of ordinary Lib Dem supporters.

There will be more uncomfortable reading for Liberal Democrats today as a new study exposes the scale of pain the emergency budget is likely to inflict on the country's poorest families.  The study by economists Howard Reed and Tim Horton says those earning under £14,200 will be hit six times harder than those at the top of the pay scale, earning more than £49,700.