Ed Miliband
Media playback is unsupported on your device

Miliband: VAT rise is 'the wrong tax at the wrong time'

The planned rise in VAT is the "wrong tax, at the wrong time", Labour leader Ed Miliband has warned.

Speaking ahead of Tuesday's increase from 17.5% to 20%, Mr Miliband claimed it would cost the average family £7.50 a week.

Chancellor George Osborne issued a statement saying "Labour left Britain with record debts that people know we have to deal with to avoid an economic crisis".

The Labour leader delivered his warning during a visit to the constituency of Oldham East and Saddleworth, where a by-election is to take place on 13 January.

  • 03 Jan 2011
Go to next video: VAT increase will 'mask' price rises