Chancellor claims opponents are not ruling out VAT hike
Labour is facing accusations of secretly planning to raise the main rate of Value Added Tax (VAT) if they win the upcoming election, according to Chancellor Jeremy Hunt. Hunt insists that his opponents have not ruled out increasing the current 20 per cent levy to help cover what he claims are £38.5 billion in spending pledges over the next five years.
Tories urge opposition to be transparent about tax plans
The Conservative party has called on Labour to be transparent about their tax intentions, noting that they have not definitively ruled out raising VAT on six occasions this week. Hunt highlighted HMRC figures suggesting that a one percent increase in the main VAT rate could generate £9 billion, almost enough to cover the annual cost of Labour's unfunded commitments.
Labour denies allegations and pledges not to increase VAT
Shadow Chancellor Rachel Reeves dismissed the accusations as "absolute nonsense," emphasizing that Labour has no plans to raise income tax, national insurance, or VAT. She expressed a desire to lower taxes for working individuals and criticized the Conservative party for their own unfunded spending proposals. Labour's Darren Jones echoed these sentiments, stating that their manifesto includes a commitment to not raise taxes in the upcoming election.
Tory claims of unfunded spending and potential consequences
During an emergency press conference, Labour's Darren Jones accused the Tories of committing to £71 billion in unfunded spending, which could lead to increased interest rates and higher mortgage costs for the average homeowner. He warned that the Conservative party's plans, including the ambition to abolish national insurance, could undermine market confidence and result in interest rate hikes.
