Tax books and child clothes - IMF

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Ministers should consider levying VAT on the likes of books, children's clothes and a range of food under recommendations by the International Monetary Fund (IMF) on how to repair the public finances.

The IMF's latest report on the British economy calls for the Government to consider reducing the scope of products and services that are "zero-rated" for the purposes of sales tax - thought to represent 2.5% of gross domestic product (GDP).