I hope this government knows what it is doing, because interest rates will have to rise soon as well (VAT increase could cost 11,000 jobs, 17 December, building.co.uk)

On the assumption that a lot of domestic building work is financed by borrowing, this cost will rise significantly. My experience is that incomes are not going up even to keep pace with inflation, so I expect projects to be shelved and an increase in cash-in-hand jobs to bypass VAT altogether.

Graham Ash, via building.co.uk