UK's poorest thumped by VAT rise

Adrian Holliday

George Osborne's so-called "progressive" VAT rise is not progressive - and the Office of National Statistics have the facts to prove it, they say. The shift in VAT from 17.5% to 20% earlier this year means the poorest now spend 58% of their outgoings on goods which attract VAT compared to 45% in 1986. In other words, the poor pay proportionally more of their incomes on VAT than the rich.