The Labour party will lay down a significant general election marker today, with a pledge that VAT will not rise if it is elected to power on 7 May.
Today I can announce a clear pledge to the British people. The next Labour government will not raise VAT.
Labour has already announced a raft of tax rises, but all but one of these would fund their spending pledges. Ed Miliband and Balls have repeatedly said they will raise taxes. It is time that they came clean with the British public about which taxes they will raise – income tax or national insurance?
Labour can make this manifesto commitment for the next Parliament because, unlike the Tories, all of our promises are fully funded and paid for.
Danny Alexander announced weeks ago that because the Liberal Democrats have managed the economy through the last five years there’s no need to increase the rate of VAT, income tax, national insurance or corporation tax for most businesses.