We are in the midst of election fever once again. On the 6th April the Prime Minister officially announced that the General Election would take place on the 6th May this year. Now we are in for a month of deliberation and heavy campaigning before Election Day itself takes place.
But when everything is over and we know who will lead us for the next few years, will anything change regarding VAT? If the existing Labour government is voted in then it doesn’t look likely there will be any changes to the VAT levels in place at the moment. Nothing was announced in the recent Budget so it is highly unlikely anything else will occur, at least not in the near future.
But supposing we end up with a Conservative government again? This could well happen because the opinion polls currently put them well ahead of Labour. And when we have a new party leading us they could change many things – indeed this is the purpose of voting for them in the first place.
We have of course seen some changes to VAT in recent times anyway. The most recent of all of them has been the reduction of VAT to help businesses weather the recession. It went down from 17.5% to 15% for just over a year, before reverting back at the beginning of the year 2010.
Whether or not that particular change did any good is open to debate. But the fact is that businesses should not have to worry about any potential changes for the foreseeable future. It will be interesting to see what happens over the longer term if we do get a change in government though. Many people think the Tories have a great chance of getting back in, and with many people dreadfully disillusioned with the job Gordon Brown is doing, a change could be imminent.
Any change in government can bring about a sea change to the way we live our lives. If the Tories are successful it could be reminiscent of the first few months we spent under Labour power when Tony Blair won back in 1997. Could we be in for another change now?
However VAT affects you at the moment, there is no chance of any major changes coming into force in the near future. If we do end up with a Tory government soon, they may decide to leave VAT just as it is – for now at least.