The Budget, which will see VAT rise to 20% in January, has increased the likelihood of a double-dip recession, the government's tax and spending watchdog said. Geoffrey Dicks, one of three officials at the Office for Budget Responsibility, at the first meeting of the Treasury select committee in the new parliament, said yesterday that cuts in public spending and higher taxes will have cut the forecast for growth and "logically increased the possibility of a double dip". Dicks said: “There are some budget measures which will have reduced demand. “We’ve taken half a percentage point off GDP. The near-term outlook for GDP is not as good as it was before the Budget. “I still don’t think that will mean a double-dip, but logically the chances of that happening have increased.”