The pressure group Tax Research LLP has attacked calls by the Institute for Fiscal Studies to apply standard rate VAT on all goods and services in the UK. The think tank said earlier this month that scrapping zero and reduced rates of VAT would mean less interference with people's spending decisions and raise enough revenue to improve the living standards of poorer people. But Tax Research said the move would add £700 a year to the cost of food, and £100 a year to fuel for the average family. Director Richard Murphy said: 'The IFS says the inflation impact is 0.25%. That's wrong. I estimate the inflation impact of a median family would exceed 4%.' He added: 'In compensation, the IFS has said the lowest 30% in the income strata should have benefit increases sufficient to neutralise the impact or make them better off. The rest should enjoy tax cuts. These are bound to go to the wealthiest, they always do.' Murphy continued: 'The IFS package is massively regressive. The compensatory package cannot be guaranteed to search those who need it, but the wealthiest will be guaranteed a saving.'