Postpone VAT hike to reduce risk of a double dip, warn experts

12th October 2010

The planned hike in VAT in January, from the current 17.5% to 20% could tip the UK into a double dip recession.

Simon Ward, chief economist at Henderson Global Investors warns that the hike could be more than most consumers can stomach. And he says the fact that Consumer price index (CPI) inflation was stable at 3.1% in September may prove to be nothing more than the calm before the storm.

Consumer pinch

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