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UK Government Proposes VAT Cut to Help Ease Inflation: Times

June 30, 2022, 9:37 PM

No. 10 has proposed a cut in VAT to curb inflation and help residents with rising living costs, The Times reports citing unidentified people familiar with the discussions.

  • Steve Barclay, the prime minister’s chief of staff, proposed a cut to the 20% headline rate of the tax
    • Barclay made the suggestion during discussions with the Treasury over the past fortnight
  • The Treasury is concerned about the cost of the move, and has warned that it could eventually fuel inflation by overstimulating the economy, adding it would benefit wealthy households as well as poorer ones
  • A potential VAT cut was ...