VAT adds 20% to essential services like plumbing, childcare, and home repairs, making them expensive for families and small businesses. We think removing this tax would make vital services more affordable, easing financial pressure for households and supporting local trades.
We think VAT on labour disproportionately affects low and middle income families and puts extra strain on small businesses. For example, a £500 home repair costs £600 with VAT, which can discourage people from hiring skilled workers. Scrapping VAT could boost small businesses, create jobs, simplify accounting, and make essential services accessible to everyone without reducing quality or availability.