The coalition's VAT hike has cost the average family more than £1,300 over the past three years, Labour has claimed. Chancellor George Osborne used his first Budget in June 2010 to announce that he was raising the rate of VAT from 17.5% to 20% from January 2011.
Labour said that Treasury figures show that couples with children have now paid out on average £1,350 more as a result of the change.
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