Falkirk West MSP Michael Matheson has hit out at the London parties after the Conservatives and Liberal Democrats voted to raise VAT, while Labour MPs abstained in a vote for an SNP amendment to bring relief for households and businesses.

Michael Matheson MSP, (SNP) has criticised Eric Joyce for abstaining from a vote in Westminster on raising VAT which could have brought relief for households and businesses in Falkirk.

The LibDems and Tories voted for a VAT rise and Labour abstained; despite calling on the LibDems to vote against.The decision by Scottish Labour MPs to abstain in a Commons vote to stop the rise in VAT will haunt the party in the run up to the Holyrood elections next year the SNP has warned.

SNP Treasury spokesperson Stewart Hosie MP branded Labour claims the party would defend Scotland from Tory policies as a “fraud” by pointing to a letter from Labour Scotland spokesperson, Jim Murphy, in which he urged Scottish LibDem MPs to vote against the VAT increase, before abstaining in a vote himself.

Mr. Matheson said;

“It is astonishing that Eric Joyce and his Labour cronies did not vote against the VAT rise with only the SNP standing up for Scotland. Not only do Labour MPs prefer a Tory UK to an independent Scotland, they are now sitting on their hands when Tory taxes hit households and businesses.

“Labour's lack of support for even more taxes on fuel and household goods will not be forgotten. This is unforgivable in the eyes of people in Falkirk already struggling with financial recovery.

“The poorest families in Falkirk will be hardest hit with some estimates suggesting their VAT bill will go up by £31 a week. Unemployment benefit will be reduced in real terms, tax credits cut and massive pressure put on housing benefit, particularly in areas where rented housing is expensive.

“Increasing VAT will put a strain on our public services at a time when they need support more than ever. The NHS in Scotland, for example, will be hit by a £26m hike in the VAT bill.

“The VAT increase also piles the pain on businesses already struggling through Labour’s recession – taking spending power out of the economy and exacerbating cash flow problems.

“Yet again we have seen how Labour can’t be trusted to protect Scotland from the Tories. Claims they would protect Scotland from damaging Tory policies are a fraud by Labour.

“We know the Lib/Dems have sold out already, but for Labour MPs to sit on their hands and do nothing to stop this VAT hike is unforgivable. This failure will haunt the Labour Party in Scotland in the lead up to the Holyrood elections.

“Jim Murphy talks the talk, but when it came to going through the voting lobbies he didn’t walk the walk. Instead of letters to Liberals, Jim Murphy should have been writing to his own Labour colleagues telling them to vote against this VAT bombshell.

“Throughout the election campaign Labour candidates claimed that only they could stop the Tories. Now, not only did they rush for the comfort of opposition instead of building an anti-Tory alternative, but these Labour MPs are standing back while the Tories and Liberals impose savage cuts and painful tax hikes.

“Labour let the people of Scotland down. They promised to protect Scotland from the Tories - instead they opened the door to a Tory government in Scotland. It is incredible to believe Eric Joyce is content to sit back and allow this to happen to people in Falkirk.”