VAT: Osborne being urged to reverse hike

19th July 2011

George Osborne is being urged to cut VAT to "restore confidence and boost growth" according to a business lobby group.

The Guardian reported that the Federation of Small Businesses had claimed the rise to 20% in January had battered industries needing to recover from the recession.

Its quarterly survey showed a dramatic decline in business confidence in the three months to the end of June.

On The Guardian comment boards villaret questioned how else the chancellor would raise taxes. "And which taxes would the Federation of Small Businesses like raised to make up the lost revenue ?

Or which bits of public spending would they like chopped yet further to bring spending in line with revenue after their proposed tax cut ? On public revenue, half a plan is no plan at all."

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