Budget 2009: VAT to return to 17.5% next year

All the cynics were predicting a big hike in VAT at the end of the year to help the Chancellor balance the books – but not so. The Budget proposal is to return the standard rate of VAT to 17.5 per cent from 1 January 2010. It seems that even in the current economic state, the Government could not stomach an unwelcome increase in VAT just after Christmas and so close to a general election!

Continued...