No Such Plans…

The Conservatives say that they have no plans to increase VAT to 20% if they win the next general election says shadow Health Secretary Andrew Lansley.

Mr Lanslet insisted on BBC’s Andrew Marr Show, that the move was note being actively considered. He added that “no such plan” has ever existed and denies reports that “senior level discussions” were being held in order to discuss this possible move.

Stephen Timms, Treasury financial secretary, says David Cameron, leader of the Tories, “needs to explain” his plans

A British newspaper says that a VAT rise would be introduced by a Conservative government within weeks of the party winning the election. They believe the decision to make the increase is part of an “emergency” budget that will reduce the UK’s debt, was made by Mr Cameron and his shadow Chancellor George Osborne.

But Mr Lansley says that no such action has been taken: “As far as I am aware we have absolutely no such plan and I know there have been no such senior level discussions.

…Can’t Be Ruled Out In The Future Though!

“We have been very clear about the need for public spending to be controlled and the priorities that we will have within public spending, including for the NHS.

“We have been very clear about that because we don’t want to be in a position where we have big tax increases, the effect of which is to stifle the economy.”

Shadow Foreign Secretary William Hague also says that there are currently no plans to raise VAT to 20%, but he also said that such a move could not be ruled out completely in the future. He said: “You can’t ask George Osborne to write the 2010 budget now.”

Mr Timms says: “If David Cameron is seriously considering this, he needs to explain why he thinks it’s right that ordinary families should pay more tax while he’s pledging £200,000 tax cuts for the 3,000 richest estates.”

The current VAT rate is 15% after Chancellor Alistair Darling reduced it earlier this year from 17.5% in a bid to tackle the economic downturn.

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