Cameron pledges no increase in VAT


Prime minister echoes Labour’s promise to keep VAT at current level, but Tories’ plans would bring deep cuts in public spending

David Cameron wrongfooted Ed Miliband at their final prime minister’s question time encounter on Wednesday by echoing Labour’s headline-grabbing pledge not to increase VAT.

As set out in last week’s budget, the Tories’ fiscal plans do not include tax rises. But they do require painfully deep cuts in public spending, of more than 5% each year, which the Institute for Fiscal Studies pointed out are “twice the size of any year’s cuts over this parliament”.

Continue reading...
view The Guardian: Economics