Jeremy Hunt has accused Labour of having a secret plan to raise VAT and has challenged Sir Keir Starmer to explicitly rule out the possibility.
Labour has repeatedly refused to rule it out after being asked at various campaign events.
On Wednesday night, in the wake of the accusation, Rachel Reeves, the shadow chancellor, issued a statement insisting that the party was not planning to increase VAT, although it remains to be seen whether that will be a manifesto commitment.
The attack will be on the first Conservative poster of the election campaign, unveiled on Thursday, which declares: “If you think Labour will win, start saving…”
The Tories say a one percentage point increase in the main rate of VAT would generate around £9 billion a year – the same as what they claim is the funding black hole in Labour’s plans.
Writing for The Telegraph, Mr Hunt says: “A VAT increase will hammer families’ finances and push inflation back up, just when we have got it down to normal.
“That’s why I can commit today that, not only will a future Conservative government not increase any rate of income tax or national insurance, but we won’t increase the main rate of VAT for the duration of the next Parliament. Keir Starmer should make the same explicit commitment in front of a camera today.”
Ms Reeves insisted Labour would not raise VAT, saying: “This is absolute nonsense. Labour will not be increasing income tax, National Insurance or VAT.
“I want taxes on working people to be lower, not higher. That is why we opposed the increases to National Insurance when Rishi Sunak put those forward as chancellor.”
William Turner is a seasoned U.K. correspondent with a deep understanding of domestic affairs. With a passion for British politics and culture, he provides insightful analysis and comprehensive coverage of events within the United Kingdom.
