AN SNP MSP has said that plans by the UK Government to impose the standard VAT rate on all taxi fares would hit poorer, disabled and older people hardest - and called on Rachel Reeves to reconsider her plans.
Reports over recent days suggest that the Chancellor is considering imposing 20% VAT on all taxi fares in her forthcoming budget.
Aberdeen MSP Kevin Stewart hit out at the impact the decision would have on older and disabled people, saying that many rely on taxi journeys to attend medical appointments and for socialising.
When the plan was mooted by the previous UK Government, it was also revealed that such a move would also have a devastating impact on the hospitality industry with an estimated five million fewer trips made to pubs and restaurants each year.
Stewart (below), who has also tabled a motion in the Scottish Parliament condemning the plans, said: “Whether it be through scrapping the winter fuel payment, turning their back on WASPI women or cutting support for disabled people, Keir Starmer’s government have repeatedly shown the disregard they have for older and disabled people.
“Now we hear that the Chancellor is again planning on hitting the most vulnerable in our society hardest by imposing a tax which will make vital journeys unaffordable for many.”
He added: “Labour should be focussing on making public transport more affordable and accessible – as the SNP has done in Scotland by scrapping peak rail fares – rather than imposing more taxes which would have a devastating impact on taxi drivers and the hospitality industry.
“Once again, Labour has shown how out of touch it is with people struggling with the rising cost of energy bills and food under their watch. It is only with the fresh start of independence that we can escape Westminster’s priorities which are so at odds with the issues facing people across Scotland.”
