Proposed VAT increase a further blow to struggling Donegal business

Irish business group IBEC, has lashed out at the planned 2 per cent VAT increase  in next year's Budget.

Its Chief Economist says it will hit consumer spending, delay the recovery and be a further blow to an already fragile domestic economy.

However the Tanaiste insists the hike, which will increase the top rat to 23 per cent, is not a done deal.

IBEC's Fergal O'Brien says if it does go ahead it'll only encourage cross border shopping:

[podcast]http://www.highlandradio.com/wp-content/uploads/2011/11/19ibec.mp3[/podcast]