Coalition wins vote on VAT increase

Jul 14 2010

A bid to scrap the 2.5% hike in VAT has been overwhelmingly defeated in a major victory for the coalition Government.

The Scottish and Welsh nationalist move was rejected by a majority of 295, after a lengthy debate on the Budget-enacting Finance Bill in the Commons on Tuesday night.

MPs voted 321 to 246, a Government majority of 75, in favour of increasing VAT to 20% from January 4, 2011.