UK's National Statistics have revealed that no one has been hit such hard by the VAT rise as is the poor. The tax has been raised from 17.5% to 20%, which has proved to be quite taxing for the marginal people.

There is drastic difference between the expenditure of poor and the rich, and this difference should be well understood by Chancellor George Osborne, who terms VAT to be a progressive tax. Poor person spends 9.8% of their disposable income on good, which has VAT, while elite class spends only 5.3% for the same.

To elevate the fear, it was also said that the economy is turning towards a double-dip recession, which could take Britain towards its doom.

The Office for National Statistics conducted a study and affirmed, "The poorest fifth of households in the UK pay more in VAT as a percentage of their disposable income than the richest fifth". The study has put forth certain facts like there is tremendous increase in the VAT items in comparison to 1986.

This study has put across one clear thing that the government needs to do something in order to ensure that the poor do not have to bear the brunt.