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| David Cameron rules out VAT rise in next parliament | David Cameron rules out VAT rise in next parliament |
| (35 minutes later) | |
| David Cameron has ruled out raising VAT in the next parliament as he moves to close off one of the main lines of attack from Labour, which had warned that the Tories would increase “the tax that hits everyone”. | David Cameron has ruled out raising VAT in the next parliament as he moves to close off one of the main lines of attack from Labour, which had warned that the Tories would increase “the tax that hits everyone”. |
| In the last session of prime minister’s questions before the election, Cameron scored a clear victory over Ed Miliband, who was unable to say in turn whether a Labour government would raise national insurance contributions. | In the last session of prime minister’s questions before the election, Cameron scored a clear victory over Ed Miliband, who was unable to say in turn whether a Labour government would raise national insurance contributions. |
| Cameron said Miliband’s failure to rule out an increase in national insurance showed that Labour was planning to introduce a “bombshell” tax on jobs. | |
| Related: Election 2015: Cameron rules out VAT rise in final PMQs this parliament – live | Related: Election 2015: Cameron rules out VAT rise in final PMQs this parliament – live |
| In an echo of the language deployed by the Tories in the 1992 election campaign, when John Major defied the polls to win a majority, the prime minister said: “So we know there is a tax bombshell coming from Labour and it is going to be, we learnt today, a jobs tax bombshell … It would wreck our economy.” | In an echo of the language deployed by the Tories in the 1992 election campaign, when John Major defied the polls to win a majority, the prime minister said: “So we know there is a tax bombshell coming from Labour and it is going to be, we learnt today, a jobs tax bombshell … It would wreck our economy.” |
| The prime minister won strong applause from the Tory benches after he answered a simple “Yes” when the Labour leader called on Cameron to give a “straight answer to a straight question” on VAT. | The prime minister won strong applause from the Tory benches after he answered a simple “Yes” when the Labour leader called on Cameron to give a “straight answer to a straight question” on VAT. |
| The Labour leader, who appeared surprised by the prime minister’s clear response, paused briefly before saying: “Let me say to him nobody is going to believe him. Nobody is going to believe it because of his extreme spending plans, because his numbers don’t add up and because he promised it last time and he broke his promise.” | The Labour leader, who appeared surprised by the prime minister’s clear response, paused briefly before saying: “Let me say to him nobody is going to believe him. Nobody is going to believe it because of his extreme spending plans, because his numbers don’t add up and because he promised it last time and he broke his promise.” |
| The prime minister then moved to turn the tables on Miliband by asking whether he would rule out increasing national insurance contributions. The Labour leader declined to answer the prime minister’s question, moving on to a new subject by asking whether the prime minister would admit he has broken his target to cut net migration to the tens of thousands. | The prime minister then moved to turn the tables on Miliband by asking whether he would rule out increasing national insurance contributions. The Labour leader declined to answer the prime minister’s question, moving on to a new subject by asking whether the prime minister would admit he has broken his target to cut net migration to the tens of thousands. |
| Cameron asked for a response to his question about whether he would increase national insurance contributions, which he described as Labour’s jobs tax that would clobber workers. Miiband said: “There is only one person who is going to raise taxes on ordinary families and that’s him. He is going to cut the NHS.” | Cameron asked for a response to his question about whether he would increase national insurance contributions, which he described as Labour’s jobs tax that would clobber workers. Miiband said: “There is only one person who is going to raise taxes on ordinary families and that’s him. He is going to cut the NHS.” |
| The prime minister’s decision to rule out a VAT rise knocks away one of Labour’s main lines of attack in the general election. Ed Balls, the shadow chancellor, gave an undertaking earlier this week that Labour would not increase VAT on the grounds that it hits the poor harder because they spend a greater proportion of their income on items subject to the tax. | The prime minister’s decision to rule out a VAT rise knocks away one of Labour’s main lines of attack in the general election. Ed Balls, the shadow chancellor, gave an undertaking earlier this week that Labour would not increase VAT on the grounds that it hits the poor harder because they spend a greater proportion of their income on items subject to the tax. |
| Balls pointed out that Cameron said before the last election that he had “absolutely no plans” to raise VAT. But George Osborne then raised VAT from 17.5% to 20% in his emergency budget in June 2010. The rise came into effect in January 2011. | Balls pointed out that Cameron said before the last election that he had “absolutely no plans” to raise VAT. But George Osborne then raised VAT from 17.5% to 20% in his emergency budget in June 2010. The rise came into effect in January 2011. |
| The exchanges on VAT came after Miliband taunted the prime minister over his BBC interview in which he ruled out serving a third term in Downing Street if he wins the election on 7 May. The Labour leader said: “On Monday the prime minister announced his retirement plans. He said it was because he believed in giving straight answers to straight questions. Now after five years of prime minister’s questions, that was music to my ears. So here is a straight question. Will he now rule out a rise in VAT?” | The exchanges on VAT came after Miliband taunted the prime minister over his BBC interview in which he ruled out serving a third term in Downing Street if he wins the election on 7 May. The Labour leader said: “On Monday the prime minister announced his retirement plans. He said it was because he believed in giving straight answers to straight questions. Now after five years of prime minister’s questions, that was music to my ears. So here is a straight question. Will he now rule out a rise in VAT?” |
| The prime minister said: “In 43 days time I plan to arrange his retirement. But he is right. Straight answers deserve straight questions and the answer’s yes.” | The prime minister said: “In 43 days time I plan to arrange his retirement. But he is right. Straight answers deserve straight questions and the answer’s yes.” |
| Asked why Cameron’s position had changed since Tuesday when his chancellor, George Osborne, five times refused to rule out raising VAT, a senior Tory source claimed the party had said all along that it had no need to increase the tax. | Asked why Cameron’s position had changed since Tuesday when his chancellor, George Osborne, five times refused to rule out raising VAT, a senior Tory source claimed the party had said all along that it had no need to increase the tax. |
| A senior Labour aide said Osborne “had an interesting look on his face” when Cameron made his announcement. He declined to say whether Miliband had prepared for the possibility of Cameron ruling out a rise but pre-prepared briefing notes referred to the Conservatives refusing to be clear about an increase. | A senior Labour aide said Osborne “had an interesting look on his face” when Cameron made his announcement. He declined to say whether Miliband had prepared for the possibility of Cameron ruling out a rise but pre-prepared briefing notes referred to the Conservatives refusing to be clear about an increase. |
| Labour will continue to use posters warning of a Tory VAT rise because the party does not believe Cameron’s promise, the aide said. He pointed to a similar Tory pledge before the 1992 election that was broken a year later. | Labour will continue to use posters warning of a Tory VAT rise because the party does not believe Cameron’s promise, the aide said. He pointed to a similar Tory pledge before the 1992 election that was broken a year later. |
| “They are in a post-budget panic,” he said. “They are spooked ... and making up policy on hoof.” | “They are in a post-budget panic,” he said. “They are spooked ... and making up policy on hoof.” |