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Shadow Chancellor calls for VAT cuts

Shadow chancellor Ed Balls has called for an emergency cut in VAT to boost the economy, according to reports.

He warned the coalition government of the dangers involved in not reducing VAT and highlighted the fact that the UK is performing worse than any of its competitors.

Describing the benefits of the cut, he said: “The inevitable increase in consumer confidence would help the struggling retail sector. It would help to push down inflation, and so reduce the risk of a recovery-choking interest rate rise later this year.”

While the results of the coalitions efforts to reduce the deficit have yet to be fully seen, the success of this government could rest firmly on this issue.

This was posted in Bdaily's Members' News section by Ruth Mitchell .