Miliband Says U.K. Borrowing to Rise If Labour Cuts VAT
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The leader of the opposition Labour Party, Ed Miliband, said U.K. government borrowing would rise to fund a temporary cut in value-added tax if he was in power now.
Miliband told the BBC’s “World at One” radio program yesterday he did “not accept” that Labour’s policy, designed to stimulate consumer spending by reducing VAT, a levy on sales, from 20 percent, would mean borrowing more than the current Conservative-led coalition government. In an appearance on ITV’s “Daybreak” program today, Miliband said the policy would mean increased debt in the short term.