Letter: Inflation fears

The CBI report (20 December) makes for very worrying reading. The prediction that the economy will slow to the point of virtual standstill is worrying enough.

The real concern in the report is the prediction that, because of the VAT rise, we will start to get such a rise in inflation that interest rates will have to start rising in 2011. An increase in mortgage rates is about the very last thing we need in the economy right now and could easily see growth back into negative territory.

It beggars belief that the Liberal Democrats are now supporting a rise in VAT to 20 per cent next month when in opposition they vehemently opposed a rise because of its very inflationary impact.

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I know we are all cynical about what Lib Dems promised before the election - but this is not about politics, this is about hurting every single family in Britain.

Michelle Smythe

Dalry Road