Pensioners 'betrayed' by VAT rise

PENSIONERS face an £8 billion VAT bill over the next five years following the Commons' approval of the 2.5 per cent increase in the tax announced in the Budget, according to Edinburgh South Labour MP Ian Murray.

And he claimed "hidden" figures showed senior citizens would also lose out through pension increases falling behind price rises and again through cuts in Disability Living Allowance and Housing Benefit.

A Labour amendment calling for the VAT hike to be postponed until its impact on vulnerable groups was assessed was defeated in the Commons.

Mr Murray said: "This is a betrayal of our local pensioners by the Tory-Liberal government. Our retired community has paid in for a lifetime and is now being hit hard in the pocket.

"There are over 77,000 pensioners in the City of Edinburgh, all of whom could be affected."