Local elections 2022: Lib Dems call for VAT cuts and sewage tax at London campaign launch

Sewage clean up taxes on water firms and an emergency VAT cut would be a fair deal for families, the Liberal Democrats have said as they launched their local election campaign.

Lib Dem leader Ed Davey urged the government to slash VAT rates by 2.5% this year, which he said would save households £600, and called for a tax on water firms to clean up rivers.

Speaking ahead of a campaign launch event in Wimbledon, Merton, today (Wednesday, April 6), Mr Davey said: “Families are facing soaring energy bills and desperately need a tax cut to help them make ends meet.

“But instead of helping, the Conservatives are breaking their promises by raising taxes again and again.”

Next month, voters across London will elect their local councillors and, in Hackney, Lewisham, Newham, Tower Hamlets and Croydon, their mayors.

English, Welsh and Scottish voters will also choose their councillors, while voters in Northern Ireland will elect their government.

The ballots will be the first major test for prime minister Boris Johnson and the Conservative government, following their response to the coronavirus pandemic, the ‘Partygate’ scandal, the cost of living crisis and the Russian war in Ukraine.

And at today’s launch, ahead of the May 5 election, the Lib Dems spoke to campaigners who litter pick at the River Wandle, in Wimbledon.

Mr Davey said: “Conservative MPs have voted time after time to let water companies keep on pumping their filthy sewage straight into our rivers.

“Rivers like the Wandle in Wimbledon, which now has the worst ecological rating possible.

“Meanwhile, water company bosses are pocketing millions of pounds in bonuses. All that must change.”

A Conservative spokesperson disputed the Lib Dem claims about sewage and said they had voted against government measures to tackle sewage discharge, the Guardian reported.

But it comes after Tory MPs last year voted down an opposition party amendment, including Labour and the Lib Dems, to ban water companies from pumping sewage into rivers.

The Lib Dems say they want:

• An emergency VAT cut, from 20% to 17.5% for one year, to save families £600;.
• A sewage tax on water companies to fund the clean-up of rivers;
• And a community ambulance fund to reopen stations and cancel planned closures.

It comes as National Insurance contribution rises come into force today, with workers paying 1.25% points more to the government.

The party has hit out at chancellor Rishi Sunak over the Treasury receiving an extra £38.6 billion in VAT over next four years due to soaring prices, as the cost of living crisis continues.

Average families will pay £430 more in VAT next year, compared to 2021-22, the party says its analysis of the Office for Budget Responsibility (OBR) has found.

Mr Davey added: “These elections are an opportunity to send a message to this Conservative government  that they can’t afford to take people for granted any longer.

“Right across the country, people are turning to the Liberal Democrats because they know we will listen and stand up for you and your community.

“We will fight for a fair deal that puts money into the pockets of struggling families through an emergency tax cut.”

Local elections 2022

• Local elections for every council in London - apart from the City - will take place on May 5.
• In order to cast a ballot, you have to be registered to vote at your current address. The deadline for this is April 14.
• For full details about how to register to vote and what the local elections are for, see our full guide to the May 5 council elections.
• Click here for more stories on the upcoming local elections.