VAT’S A PROMISE BUT INCOME TAX & NI COULD RISE
May wriggles on Tory hikes
Poll is biggest in my lifetime
THERESA May has promised not to raise VAT if the Tories win the General Election.
But during a series of TV interviews yesterday she refused to rule out other tax hikes.
The PM joined Labour in pledging a freeze on the tax on goods and services at 20% or less until at least 2022.
Speaking on ITV’s Peston On Sunday, she said: “In relation to specific taxes, we won’t be increasing VAT.”
But she signalled she would scrap the Tories’ flagship “tax lock” vow made in 2015, leaving her room to raise income tax and National Insurance.
Last month Chancellor Philip Hammond ran into trouble when he tried to raise National Insurance for the self-employed but was forced into a U-turn by a revolt ® from his own backbench Tory MPs. Mrs May is now allowing herself wriggle room to raise taxes if necessary. The PM told BBC’s Andrew Marr Show: “I’m also very clear that we don’t want to make specific proposals on taxes unless I’m absolutely sure that I can deliver on those.” Labour shadow chancellor John McDonnell told Peston: “I will say also, we will not increase VAT.” Mr McDonnell insisted Labour is committed to a “fair taxation system” and said that if Jeremy Corbyn becomes PM then tax breaks for big corporations could be diverted to spend on the NHS and schools. Mrs May also claimed the June 8 poll was “the most important election that this country has faced in my lifetime”.