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Motorists among biggest VAT losers

VAT on goods and services has risen to 20% for everyday goods and services.

But some items like food and children's clothing will remain exempt from the charge.

The chancellor, George Osborne says the increase will raise twelve billion pounds and help to lower the country's deficit.

But the rise has sparked a furious row over exactly who will be hurt most by the higher prices with Labour saying Britain's poorest will be hit hardest.

Hugh Pym looks at which prices have gone up, and which have not.

  • 04 Jan 2011