PM hints VAT rise permanent but not 50p tax rate

He also told the BBC the coalition was "strong" and would not change course because of the threat of strikes. However, Labour's Alan Johnson said it would be "extraordinary" to scrap the 50p rate, not the VAT rise which hit the poor. Last week's VAT rise is the second increase in a year, after Labour chancellor Alistair Darling restored the 17.5% rate in January 2010, having temporarily reduced it to 15% for 13 months to stimulate the economy. Cameron was asked about whether the rise was a temporary measure, following comments from chancellor George Osborne, who last week said he r...