Council not passing on VAT cut

9.26.09pm GMT Mon 26th Jan 2009

Chris Maines wants the VAT cut passed on to local residents

The Government's cut in VAT is not being passed on to local residents by Lewisham Council, it has emerged following quizzing by Liberal Democrat councillor Chris Maines. The costs of several services, particularly parking charges, have not been lowered in line with the reduction in tax introduced on 1st December by the Government as part of their emergency package to address the economic crisis.

"The Labour Government told us this tax cut would put more money into the pockets of the public. It seems dishonest of Lewisham's Labour Council to pocket the money for itself," says Cllr Chris Maines.

"I am sure the Council could easily reprogramme parking meters to give more time or take less money," Cllr Maines said after being told by the Council that "it would not be practical" to reduce these parking fees. "I am sure if VAT had been increased they would have managed to make adjustments," he added.

The prices of tickets at The Broadway Theatre have not been reduced in line with tax cut. "We all assume it is a duty of a business to pass on the VAT cuts to their customers but Lewisham Council appears above the law. Their actions make a mockery of the Government's efforts to give money back to people to help revitalise the economy," says the Liberal Democrat councillor for Blackheath.

Lewisham Council have failed to give any indication that the tax reductions will be passed on at any time in the future.

"It is difficult to enforce this tax cut by all other business, whether small or multi-national, if the Council have ignores the Chancellor's instructions to reduce prices," says Cllr Maines. "Cheaper parking might encourage people to shop locally and boost Lewisham's economy."