Alan Johnson
Media playback is unsupported on your device
Video

Alan Johnson: 'VAT rise is a political choice'

The top rate of VAT has risen from 17.5% to 20% as the government looks to boost tax revenues to cut the UK's debt levels.

Business groups have warned that retailers will be hit by the increase, while opponents of the rise have said the poorest will be hit hardest.

Shadow Chancellor Alan Johnson told the BBC why the decision is "a political choice" rather than a necessity.

  • 04 Jan 2011
Go to next video: Shoppers' views on VAT increase