VAT rise will hit the poor hardest
The rise in VAT is likely to disproportionately affect the poorest families, according to Save the Children.
VAT on goods and services is going up from 17.5% to 20% from 4 January 2011. Food, children's clothes, newspaper and books will continue to be exempt from the tax. Save the Children argues that a 20% VAT rate means the poorest parents will see their VAT bill rise to at least £1,600 a year. For example, the cost of telephone bills or adult clothing will increase.
Read a briefing paper from Save the Children on the likely impact of a VAT rise.
Find out more about child poverty.
Posted on 23 June 2010
Further pages
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