The 2.5% increase in VAT is a move which had to happen, entrepreneur Charlie Mullins has claimed.
The founder of Pimlico Plumbers said George Osborne had no choice but to raise the tax in today's Emergency Budget.
"VAT is a 'no brainer' of a rise – it had to happen," he said. "I'm like everyone else, if I had to decide between keeping more of my company’s income or handing it over, the choice would be simple.
"It's just not the case this time around. Although it'll hit my firm, it's a case of staying in business or going out of business and that’s why I’m behind a rise. To be honest I thought it’d go up straight away."
The 20% VAT rate will come into force on 4 January 2011.
Charlie Mullins was one of four experts who provided instant reaction on BusinessZone.co.uk as the Emergency Budget was unveiled. Replay his comments here.