Rishi Sunak's good news on Tampon Tax, bad news on infrastructure strategy

CHANCELLOR Rishi Sunak will scrap the unpopular “tampon tax” as he presents the Budget on Wednesday (11).

Reports said the 5 per cent rate of value-added tax (VAT) on women’s sanitary products will be abolished from January 1, as the Brexit transition period ends.

The move will be the culmination of a two-decade-long campaign by women’s rights activists.

Earlier, the government had pointed to a European Union directive that had fixed the minimum VAT slab of 5 per cent on women’s sanitary products, which were classified as “non-essential, luxury items”.

The Treasury estimates the move will save the average woman at least £40 over her lifetime, with a cut of 7p on a pack of 20 tampons, and 5p on 12 pads.

Laura Coryton, who had launched the Stop Taxing Periods campaign in 2014, said the “end of this tax symbolises the end of a symptom of sexism and the period taboo”.

“I’m so happy that all 320,000 people who signed my petition, as well as the many generations who have campaigned against this tax, have finally been listened to,” she added.

Other activists hailed the move, but also raised concerns on whether the Treasury would axe the Tampon Tax Fund, which channelled the levy money to vulnerable women’s welfare.

Women’s Resource Centre chief Vivienne Hayes said: “We are over the moon to learn of this news, tampons and sanitary towels were never luxury items and should never have been subject to VAT.

“Congratulations to all the women who campaigned so long for this ridiculous and unfair tax to be removed.

“We are concerned that the Tampon Tax Fund will now be abandoned by the Government and we hope to see a replacement fund for women’s health and support charities announced in the near future.”

Another major concern that arose a day ago was over the long-awaited National Infrastructure Strategy (NIS), which was likely to be delayed.

The 30-year plan—vital to the government’s “levelling-up agenda”—was to be presented “alongside” the Budget, and former chancellor Sajid Javid had reportedly “confirmed the timetable”.

But, sourced said the strategy, which would involve an investment of £100bn on the economy and environment, would be delayed by some “days or weeks”.

Sources said Sunak was taking time to “refocus on a likely increase in resources and better integrate the UK's net zero emmssions by 2050 goal”.

The chancellor’s tweets seemed to reflect his priorities. On Firday (6), he said, “In 5 days time we will lay the foundations for a decade’s growth”.

Today, he followed it up with: “Reaching net zero and ensuring we protect our natural environment.”

A Downing Street spokesman said: “It is vital that we give these decisions the proper time and care they deserve. The national infrastructure plan will follow in the coming months and government officials are working on it as a priority.”

Shadow chancellor John McDonnell, however, said the delay spoke of “absolute chaos” in the government, adding that the delay was “unacceptable”.

Sir John Armitt, the chair of the National Infrastructure Commission, said there was disappointment, but the end result “will be worth the wait”.

“Naturally we are disappointed about the further delay in the government’s formal response to the national infrastructure assessment, which we published over 18 months ago,” he said.

“However, we are encouraged by the evident focus the government wishes to place on investing in the UK’s future infrastructure.

“Prioritising that investment within a long-term plan is key to success and if a short delay leads to a better strategy that more comprehensively addresses our recommendations, it will be worth the wait.”