David Cameron rules out VAT rise after general election

David Cameron wrongfooted Ed Miliband today by ruling out a rise in VAT after the general election.

The pledge came as a surprise, because Chancellor George Osborne refused five times in a committee grilling yesterday to deny that he was secretly planning a hike.

Mr Miliband challenged the Prime Minister to give a “straight answer” to the question of whether he would rule out a VAT rise.

Mr Cameron responded in the last Prime Minister’s Questions before the election: “Straight questions deserve a straight answer: Yes.”

Mr Miliband said: “Nobody is going to believe it.” The Tory leader retaliated by challenging Labour to rule out a National Insurance increase, something Mr Miliband declined to do three times.

The exchange was watched from the Gallery by Mr Cameron’s wife, Samantha, and his children Nancy and Elwyn.

Labour claimed that a VAT rise was the only option for the Conservatives to balance the nation’s books without borrowing or other tax rises.

Treasury figures suggest a rise to 22.5% would cost a family with children an average of £450 a year and a pensioner couple £275 a year, according to Labour.