LETTER: VAT returns

From Mr Mark Blackman

Sir: Am I correct in remembering that VAT was increased from 15 per cent to the current 17.5 per cent to pay for transitional relief as the poll tax was replaced by the council tax?

Southwark Council informs us that as this relief is being withdrawn, it may have to increase some of its council tax charges by up to 90 per cent. Can we expect to hear soon from the Government that VAT will return back to its old rate?

Yours faithfully,

Mark Blackman

London, SE5