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Finance Bill

That is a very good point. The Budget offers no help whatsoever for the small businesses to which my hon. Friend referred. However, it is not just small businesses that are affected. Some supermarkets are very wary about the increase because of what they fear will happen to their businesses. The finance director of Tesco has called on the Government to freeze VAT at 17.5% because, he says, the economy is very fragile, saying:""The recovery is happening but it's fragile and therefore the balance is important"." He says VAT""is going to be part of the austerity package but it is a question of when you do it. The best thing would be to wait a bit."" Let me also give Sainsbury's a mention. According to Eye Spy MP, the Chief Secretary has been shopping there and buying Quavers. I am not sure whether they were intended to sustain him during tonight's debate. Justin King, the chief executive of Sainsbury's,""warned the incoming UK government to refrain from increasing VAT amid speculation it could be an option considered by"" the coalition Government. As has been pointed out, the VAT increase will have a real effect on retail business large and small. As for the consumer viewpoint, Mike O'Connor, chief executive of Consumer Focus, has said:""Thousands of the things we buy every day are going to get more expensive. The VAT rise will hit the poorest consumers hardest as people who earn least already spend proportionately more of their income on VAT and it will be even more important for consumers to shop around for the best bargains.""