Some information about VAT.

As part of the EU, we are subject to many of the tax raising regulations. The minimum rate of VAT any EU country is allowed to levy is 15%, and the only ones on that rate are Cyprus and Luxembourg. The highest are Sweden and Denmark at 25%.

When the Labour government reduced our VAT to 15% last year, they had to get permission from the EU, and were only granted it on a temporary basis.

For some years, all member states have been under pressure to introduce 'tax harmonisation' measures. That means somewhere around the median rate in the range 19 - 22% - Germany & Greece 19%, Ireland 21%, Poland 22%, all the rest around the same level.

It was only a matter of time before we were required to come into line. The 20% rate was bound to happen eventually. Now was a good time to do it - it meant that they could blame it on the deficit as 'a necessary and unavoidable' measure, without having to admit that we are in fact ruled by Brussels and our Parliament has very little power in these matters.