In June, Total Politics carried THIS on its blog...
"The Lib Dems did campaign against a VAT increase but economic support is in the
coalition's favour. James Brown from the Institute for Fiscal Studies (IFS)
tells Total Politics that these claims are inaccurate, VAT will hit the richest
worst. According to Brown, the Budget is regressive overall, in that it will hit the poorest the hardest, yet, its VAT increase is actually progressive. As poorer people tend to spend more money on 0-rated necessities [products without VAT], they will be largely unaffected by the VAT increase: It is the richest,
with the higher expenditure, who will actually be feeding the government's
coffers with a VAT increase."
How interesting the Guardian didn't mention the IFS view on the VAT rise. It clearly didn't suit their agenda.
UPDATE 10.45am: LibDem Voice has an excellent post by Iain Roberts on this.