Angela Eagle MP, Labour’s Shadow Chief Secretary to the Treasury, said in response to today’s figures showing CPI inflation running at 4.2 per cent: “It is worrying that inflation is still more than double the Government’s target rate.
"Rising world commodity prices are partly to blame. But things have been made much worse in Britain by George Osborne’s big rise in VAT, which is due to his decision last year to cut the deficit too far and too fast. "Families and pensioners who are already being squeezed hard by the Tory VAT rise and cuts to tax credits now face the prospect of huge rises in their gas and electricity bills too.
"George Osborne should temporarily reverse his mistaken VAT rise, which is costing a family with children an average of £450 a year. A temporary VAT cut now would ease the squeeze, give this stalled economy the jump start it urgently needs and so help get the deficit down for the long term."