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Is VAT rise a 'tough but necessary step'?

VAT has risen to 20% from today and while some are calling it a tax on the poorest, the government says it is a 'tough but necessary step'.

The government says the hike will raise around £13 billion a year which is needed to tackle the UK's budget deficit. But retailers say it could slow down consumer spending, fuel inflation and lead to job losses.

Emma Simpson reports.

  • 04 Jan 2011
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