Will VAT increase help or harm the economy?
The top rate of VAT has gone up from 17.5% to 20%. Will it help tackle the budget deficit?
In an interview with the BBC, Chancellor George Osborne said that the increase was a "tough but necessary" step towards restoring the UK's economy.
However business groups have warned that retailers will be hit by the increase. There are also concerns that the poorest sections of society will be hit hardest.
Is the government right to increase VAT? What impact will the rise have on your personal finances? Do you run your own business? How are you coping with the changes?
This debate is now closed. Thank you for your comments.