In the space of twelve months, VAT has risen by 33.3%.

This will further inflate recent increases in the cost of energy to households, and will inflate the cost of fuel, and that affects every product that needs to be distributed, including food.

The Government may claim there is no VAT on food but there is VAT on the fuel used to distribute it.

Inflation will affect the poorest the worst.

All councils will need to make savings. There will no doubt be job losses, suppliers will also be hit by cuts in council spending and council front-line services to vulnerable and elderly people will be hit as services are reduced.

Council nurseries are facing cuts and some parents may have to give up work or make alternative arrangements.

Police forces face reductions in their budgets and this will obviously affect crime levels.

NHS cuts will affect many services, and more and more people may be refused treatment just to save money.

Civil unrest has already reached the most protected people in the UK – Conservative Party headquarters and the Royal Family coming face to face with student unrest.

Most of the cuts have been targeted at students, the elderly and the disabled.

Maybe the Government thought these groups would be the easiest to target but it has caused unrest and it will only get worse.

The rise in the unemployed will create even more victims of the cuts which will fuel unrest.

There are some who will have a happy new year, though: bankers, who caused the mess, will get their bonuses, and energy company bosses will get bonuses based on increased profits.

Ian Davies, Worcester Road, Blackburn.