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Government scraps three tax rises as Election looms
The Government has dropped plans to impose three controversial tax rises in an effort to push through new legislation ahead of the General Election.
With Parliament set to be dissolved on 12 April, ministers have abandoned the proposed 10% tax increase on cider after it was met with fierce criticism from opposition parties.
The Chancellor is also thought to have backtracked on plans to levy a 50p per month charge on landlines to fund super-fast broadband and a tax on furnished holiday lettings.
The 10% above inflation tax rise on cider was announced in the 2010 Budget and came into effect at the end of March. However, the increase will now cease on 30 June and prices will be reduced.
Ministers are often forced to make concessions in the rush to ensure that legislation is passed before Parliament breaks up in the run-up to an Election.
While the Conservatives have declared the tax reversal ‘a major victory for businesses and consumers across Britain’, Labour has insisted that the measures will be re-introduced if the party is re-elected.