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“Welfare bill soars as coalition counts cost of austerity drive,” headlines The Guardian, explaining that "rising unemployment will cost the government £1.5bn [€1.74bn] more than expected inwelfare benefits, according to official forecasts that reveal the hidden cost of the coalition's austerity drive”.The English daily puts part of the blame for the situation on the VAT hike, from 17.5 to 20% as of 4 January, which is bound to prove a drag on growth as the year wears on. Hence the “spending spree” on the first weekend of the new year, reports The Guardian, as consumers turned out en masse “to hunt for bargains in the January sales and beat Tuesday's VAT rise”.
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