May stokes fears that she is planning to raise taxes

THERESA MAY has prompted speculation that she is ready to raise major taxes, post-election, after she declined to rule out increases three times in an exchange that will unsettle the Conservative Party faithful.

Despite repeated questioning, the Prime Minister did not commit to retaining her predecessor David Cameron’s promise not to increase VAT, income tax or national insurance.

During a stump speech on the campaign trail, Mrs May tried to play down the growing unease by insisting the Tories will “always” be the party of low tax.

But her refusal to explicitly rule out higher taxes, a hallmark of previous Tory governments and a flagship policy in the 2015 election manifesto, is expected to anger party activists.

In another shift to the Left, Mrs May will reportedly put a price cap on the amount energy and gas firms can charge customers. The policy will save 17 million customers an estimated £100 on bills, with regulator Ofgem setting a maximum price in future.

The Sunday Telegraph has learnt that

when the Cabinet met to discuss the election last week it was agreed that too many promises had been made in the 2015 manifesto.

It is understood that half a dozen voices called for a much “slimmer” manifesto that would leave ministers less constricted if re-elected. There are also concerns that Mrs May is set to dump most of Mr Cameron’s promises given that only around 80 of the 650 pledges have already been achieved.

Ben Gummer, the Cabinet Office minister, is leading the drive to create a slim manifesto inspired by Margaret Thatcher’s 1979 election prospectus.

During a campaign speech in Dudley in the West Midlands, Mrs May said: “At this election people are going to have a very clear choice ... they will have a choice between a Conservative Party which always has been, is and will continue to be a party that believes in lower taxes, in keeping taxes down for ordinary working people.

“Or the choice is a Labour Party whose natural instinct is always to raise taxes.”

However, despite being pushed three times, she failed to endorse the so-called tax-lock, choosing instead to play up the party’s record on tax cuts.

On Friday, the Chancellor Philip Hammond had seemed to back ending the tax lock as he spoke about the importance of economic flexibility.

Sir Vince Cable, the former Liberal Democrat business secretary, claimed that Mr Hammond and Mrs May were “at war” over the policy.

“Philip Hammond admitted yesterday that taxes would have to rise,” he said. “Theresa May should come clean on how she intends to fill the Brexit black hole if she won’t increase taxes.”

‘She should come clean on how she means to fill the Brexit black hole’