Harman reveals VAT review plans
Labour's deputy leader has suggested that a planned increase in VAT was "under review" amid concerns that it could hamper any economic recovery.
A further announcement on the issue could be expected in the autumn Pre-Budget Report, Harriet Harman said.
Chancellor Alistair Darling cut VAT from 17.5% to 15% last year as part of his strategy to fight the recession.
However, he made clear it was a temporary move that would be reversed on January 1, 2010.
But business leaders warned the increase could set back the economic recovery.
Asked about the plans on Channel 4 News, Ms Harman said: "Well, you can rest assured that the Chancellor, Alistair Darling, is keeping absolutely every issue in relation to the public finances and (of) the impact of tax on businesses and family finances... they keep them under review every day of the week and they will be making further announcements."
She added: "Any announcements that have to be made will be made in the autumn in the Pre-Budget Report."
Ms Harman also sidestepped questions about the Treasury's projection that the UK economy will be out of recession by the end of 2009.
"I am not making any predictions about the recession," she said.
"Of course the Treasury have to have forecasts and they have to review those forecasts."
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