Displaying items by tag: fiscal policy

Labour, the Conservatives, and the Liberal Democrats have all pledged not to raise value-added tax (VAT) if they win the general election. Chancellor Jeremy Hunt confirmed that the Tories would maintain the current VAT rate, challenging Labour to do the same. Shadow chancellor Rachel Reeves dismissed claims of a planned VAT hike as 'nonsense,' also ruling out increases in income tax or National Insurance. Lib Dem spokesperson Munira Wilson echoed this. Ahead of the official election campaign, Labour promised economic stability and explicitly ruled out tax hikes for working people. They plan to impose VAT on private school fees to fund state school teachers. Jeremy Hunt criticised Labour's tax stance, suggesting a potential VAT rise if they win. However, Rachel Reeves labelled this claim 'absolute nonsense’, reiterating Labour's commitment not to increase taxes on working people.