The British election battle over tax and spending intensified today after Prime Minister Tony Blair indicated that Labour's manifesto would include a pledge not to raise income tax.
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Prime Minister Tony Blair
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The Tories immediately claimed Labour would have to return toputting up indirect "stealth" taxes if it was to meet its ambitiousspending targets in the next Parliament.
However, the Conservatives were also pushed on to the defensive overtheir plans for tax cuts after shadow social security secretary MrDavid Willetts appeared to suggest that they may not be able toachieve the full stg£8bn of savings promised in their manifesto.
The Prime Minister dropped a broad hint that Labour would repeat its1997 pledge not to raise the top or basic rates of income tax afterdetails of the manifesto were leaked to The Guardiannewspaper.
Shadow chancellor Mr Michael Portillo said Labour's plans to increasepublic spending meant that they would simply have to find another wayof raising taxes to meet their commitments.
"It (Labour) plans in the next Parliament to raise taxes again and itwill do it by the same method, by taxing most those who can leastafford it," he told BBC Radio 4's the World at One.
Tory leader Mr William Hague, in Edinburgh for the launch of hisparty's Scottish manifesto, challenged Mr Blair to promise thatLabour would not raise taxes at all if it won the election.
"If he is not prepared to say that, everyone will know he plans yetmore stealth taxes on the people of Britain,'' he said.
Liberal Democrat leader Mr Charles Kennedy however accused Labour ofbeing "timid'' by not being prepared to come out and say that itwould put up taxes if necessary to maintain spending in publicservices.
"If they wanted to be really radical they would say that, ifnecessary, and they felt it appropriate to increase taxation fromsocial or economic necessity, that they would keep that in reserve,''he told a news conference in Manchester.
Earlier Chancellor Gordon Brown again refused to be drawn on whetherLabour would keep up the same level of spending on public servicesafter 2003-04 when, under current plans, the rate of growth is set tofall back from 3.7% to 2.5%.
The respected Institute for Fiscal Studies has warned that theGovernment would have to raise taxes or borrowing by 5 billion if itwants to keep up the rate of growth in public spending after thatdate.
PA