The Labour government has pledged not to raise VAT if it is elected into power on May 7.
Shadow Chancellor Ed Balls said in a speech in Birmingham today: “The next Labour government will not raise VAT. We will not put up VAT. And we will not extend it to food, children’s clothes, books, newspapers and public transport fares.
“We will not raise VAT because it’s the tax that hits everyone. It’s the tax that hits you every day. And it hits pensioners and the poorest hardest.”
The current Conservative and Liberal Democrat coalition raised the main rate of VAT from 17.5% to 20% in the 2010 emergency budget.