Osborne should apologise for calling VAT 'progressive'

Labour Leader Ed Miliband has strongly criticised the government's VAT increase which comes into effect today.

VAT is to rise from 17.5% to 20%.

Chancellor George Osborne defended the increase saying it was a "tough but necessary step towards Britain's economic recovery" and called the move progressive.

But Ed Miliband called the increase the wrong tax at the wrong time.