COLCHESTER MP Bob Russell has revealed he may oppose the Budget after increases in VAT were unveiled.

Yesterday’s budget revealed VAT will be increased from 17.5 per cent to 20 per cent on January 4, something the Lib Dems campaigned against in the run-up to the election.

In a sign of the strains in the Conservative and Lib Dem coalition, Lib Dem Mr Russell said he could not see himself voting for the Budget.

He said: "Less than 50 days ago, I was seeking re-election in Colchester opposed to a raise in the level of VAT.

"So I am not at all happy."

* See Wednesday's Gazette for a special report on the Budget.