It gives me deja vu feeling. In 1997, Japanese PM Hashimoto decided to increase the rate of VAT from 3% to 5%, as government debt was thought to have reached unhealthy level and Japanese economy had shown the sign of recovery. Sadly the recession came back in the next year. The unemployment rate and suicide rate increased dramatically, then Hashimoto resigned. The next PM Obuchi had to increase government debt a lot to boost the economy, he sarcastically called himself "The king of debt".
Well, good luck Chancellor!