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The rise in VAT leaves the leader writers divided - for the to restore the public finances.

Similarly, the .

However, the .

The by saying the new rate would be permanent. It says it has little to do with the deficit.

Food substitutes

Many papers consider how retailers responded to the rise in VAT.

The leaped as companies used the new rate to push through a range of extra price rises.

The of foods that do not attract the tax.

For instance, the paper says potato crisps and ice cream are taxed at 20% but tortilla chips or corn chips and frozen cheesecake are zero-rated.

Share boost

A number of papers find some economic cheer amid the gloom of VAT-fuelled price increases.

The about the higher rate.

The paper says shares powered ahead to close at their highest level since the banking crisis in 2008.

The because of the surge in share prices, a rise in the number of mortgage approvals and a strong manufacturing industry performance.

Ill feeling

The , representing 6% of the labour force, called in sick after the Christmas and New Year break.

The Telegraph says the missing workers are estimated to have cost the economy £302m.

Of those calling in sick 275,000 blamed a cold, cough or flu.

The , managers suspect some were simply trying to prolong the Christmas break.