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.
About Dan Martin
Dan Martin has 10 years experience as a journalist writing about entrepreneurs and the issues that affect them.
After three years working as a researcher for Sky News, he joined BusinessEurope.com as a reporter. This was followed by two years working as news editor for Startups.co.uk during which time Dan also contributed to Growing Business magazine. In 2006, he joined Sift Media as business editor before being promoted to editor of BusinessZone.co.uk. He also has responsibility for UK Business Forums, the UK’s most active online forums for small business entrepreneurs. In addition, Dan founded The Pitch, BusinessZone.co.uk's nationwide competition for small business owners. He host the grand finals in 2009 and 2010 in front of an audience of 300.
As well as interviewing many entrepreneurs, Dan has written content for leading business organisations such as the Department for Business, Enterprise and Regulatory Reform, British Chambers of Commerce, Forum of Private Business, Investors in People and Business Link for London. Among the publications that have quoted Dan are The Times, Mail On Sunday, Financial Times, Personnel Today and Bristol Evening Post. His articles have also been published by publications including eGov Monitor, Virgin Express in-flight magazine and Personal Success.
Dan regularly speaks at events about small business and social media issues. Among the events he has presented at are the National Federation of Enterprise Agencies' annual conference, Learning Technologies, Publishing Expo and World of Learning. He has also chaired high profile debates featuring senior representatives from Business Link and the Federation of Small Businesses and Dragons' Den judge James Caan.
Dan was named the 10th most influential political blogger on Twitter by the Independent and won the public award for best B2B tweeter at the Golden Twits 2010. He also organised the Bristol Twestival, part of a global Twitter driven charity initiative, in February 2009 and March 2010. Volunteers from 175 cities around the world organised events using the social network. In total, $350,000 was raised for charity: water in 2009 and $500,000 for Concern in 2010. In Bristol, £1,500 and £5,600 was raised.