Prime Minister David Cameron
Media playback is unsupported on your device

VAT rise to 20% is permanent, hints David Cameron

Prime Minister David Cameron has suggested that the rise in VAT from 17.5% to 20% could be permanent.

He told the BBC's Andrew Marr Show the government was trying to deal with the "structural budget deficit", therefore the 20% VAT level would be part of that structure, "so the changes we are making have to be pretty permanent too".

  • 09 Jan 2011
Go to next video: Motorists among biggest VAT losers