How the rise to 20% VAT will impact on people in the East Midlands

Say NO to VAT increase Ahead of the vote on the coalition government's plans to increase VAT to 20%, Labour's MP for Bassetlaw, John Mann, a member of the Treasury Select Committee, is warning about the potential impacts of the increase on people here in the East Midlands.

According to figures carried out by the Centre for Retail Research on behalf of Kelkoo, the impact of the VAT increase will cost households on average an extra £1.16 per day, or £425 a year by adding 2.1% to the price of everyday goods.

The research also shows that people on low incomes would be hardest hit by the increase as they already spend more of their income on taxes compared to average households.

Commenting on the figures John said: "This research shows just how unfair the VAT increase is. Families here in the East Midlands are already facing tough times and have already had to make tough spending decisions. The last thing that they need is to find that their weekly shop has become even more expensive because of the VAT increase.

"The Tories have got this wrong. We all agree that the deficit needs to be reduced, but it needs to be done in a fair way that minimises the impact on hard working families."

"I am hoping that in tomorrow's vote MPs will realise that to increase VAT will have a devastating effect on families and they will vote against it."