‘VAT rise is going to hurt Havering’

AS THE rate of VAT increased from 17.5 to 20per-cent this week, a Havering MP described the move as “worrying” for residents.

Labour’s Jon Cruddas, who represents Dagenham & Rainham, said: “This will cost each family on average �600 a year and is estimated will cost some 250,000 jobs, many of whom will be local people. It will also hurt those with the least the most and is not fair.

“It is the wrong tax at the wrong time and could endanger our economic recovery.

“It is a worrying start of the year for people in this part of the world.”

But Romford’s Conservative MP Andrew Rosindell said: “I’m afraid it’s what the government had to do to get us out of the financial catasrophe that was left.

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“The last Labour government has left us with the worst debt in the history of this country.”

A report on the VAT increase, conducted by a marketing company, Acxiom, has concluded that Havering will be one of the worst affected parts of London.

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Mr Cruddas said: “The research signalled that people in this part of London will be among the worst affected.”

Mr Rosindell said that he believes people in all areas of the country will be made to feel the impact of this week’s VAT increase.

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