Ed Miliband being interviewed about VAT increase
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Osborne should apologise over VAT

Labour Leader Ed Miliband has strongly criticised the government's VAT increase which comes into effect today.

VAT is to rise from 17.5% to 20%.

Chancellor George Osborne defended the increase saying it was a "tough but necessary step towards Britain's economic recovery" and called the move progressive.

But Ed Miliband called the increase the wrong tax at the wrong time.

  • 04 Jan 2011