Clegg: 95,000 jobs wasted for pointless VAT cut

12.01.00am GMT Thu 19th Feb 2009

Liberal Democrat Leader Nick Clegg today [Thursday] revealed that Gordon Brown is wasting £31m a day on his temporary VAT cut, money which should be used to create thousands of much-needed jobs instead.

The Government has missed the opportunity to create up to 95,000 jobs by persisting with its ineffective cut in VAT.  The Liberal Democrats have proposed using the £12.5bn cost of the VAT cut to create jobs in green investment projects for schools, hospitals and homes - investment which would provide a long-term return for the country as a whole.

Nick Clegg said:

"Every day the Government is wasting £31m on a pointless VAT cut that gives people no real help.

"With unemployment soaring this money should be spent on creating the jobs we urgently need right now and the economic infrastructure we need for the future. This would put more than 95,000 people back into work as part of a green investment programme, insulating every school and hospital in the country, and installing smart meters in every home.

"Gordon Brown should not borrow huge sums of public money for a one-off giveaway which leaves no lasting effect. Borrowed money should be used instead to create jobs now and yield a long-term return for the country as a whole."