Right to left: Glasses of beer, a gaming console, white goods in a shop, a row of washing machines
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Warnings over consumer spending after VAT increase

VAT will increase from 17.5% to 20% on Tuesday as a key part of the government's plans to cut the budget deficit.

But businesses are warning that the move could lead to lower takings and put thousands of jobs at risk.

Joe Lynam reports.

  • 03 Jan 2011
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