It's not pleasant but required ! And it puts much needed funds back into the pot. There will be an initial outcry, but it will fade with time (I know this because Germany in 2006 had a VAT of 16% in 2007 it was raised by
3% to 19%). This isn't solely a Coalition necessity it would've been due under Labour too as the Country is on its arse due to massive debt & nowhere near enough incoming monies to cover costs.
Rise in UK VAT rate looks likely post-election - Blick Rothenberg Chartered Accountants
As to harming the economy that has already been done ! In the long term the hike while disliked will be beneficial for UK. At least in UK you have the softening of the impact by many major stores doing deals on goods thereby halving the price (BOGOF/3 for 2 and suchlike) here & in most other European Countries these marketing techniques don't exist, you pay what you pay ! Also there are different tax rates for different types of product so the rise will not affect all everyday usage. Scaremongering perhaps or the Doom & Gloom dispensers Cherry picking ?
VAT basics for consumers : Directgov - Money, tax and benefits