Labor chief blasts U.K. sales tax rise

LONDON, Jan. 3 (UPI) -- Britain's opposition leader is denouncing the rise in the national sales tax as an assault on jobs, living standards and struggling retailers.

The value-added tax is increasing from 17.5 to 20 percent, which Labor Party chief Ed Miliband warns will cost the average family 7.50 pounds ($11.60) a week.

The rise is expected to push the cost of a pint of beer above 3 pounds ($4.65) in pubs, add nearly 10 pounds ($15.50) to a television and raise the price of a Ford Focus by more than 300 pounds ($465), The Independent reports.

Many stores, hurt by a cold wave and snow, say they will to absorb the blow initially but eventually will be forced to pass the cost on to consumers.

"Retailers are discounting in a big way now to make up for missed sales," the British Retail Consortium said. "That may mean the impact of the VAT rise is lost amongst discounts, but ultimately retailers can't absorb the cost indefinitely."

Miliband planned to highlight the issue in a campaign speech for a by-election Monday.