MPs vote through VAT rise

THE increase in the reduced rate of VAT – part of the government’s second austerity plan – has been voted through by MPs.

The measure, taking the rate from 5.5% to 7%, affects a range of common goods and services, such as home renovations and restaurant meals. However school canteen meals have been spared.

Budget Minister Valérie Pécresse said it was important “to make a gesture”. “We must not encourage families to take their children out of school meals,” she said.

Food from shops, considered a basic essential, is not affected, however books, for example, are. UMP Party MP Hervé Gaymard had argued they were “spiritual food”.