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VAT reaches highest level ever today

VAT goes up to 20% today, its highest level ever.

The Government hopes to raise an £13bn from the increase, but opposition leaders have been very critical, describing it as reckless.

Business groups have also predicted that it could have a damaging impact on companies at a time of tentative recovery.

Joe Lynam's report features Jane Bevis, from the British Retail Consortium.

  • 04 Jan 2011