Campaign Hots Up As Leaders Trade Blows On Tax

Ed Miliband accused David Cameron of producing last-minute gimmicks as the two men clashed over family finances and tax pledges.

The Labour leader said the Conservatives' five-year tax lock pledge was a "false promise" and that family budgets would be "in the firing line" if Mr Cameron returned to power on 8 May.

The Conservative leader said a Labour government was too big a risk for the country and would just heap more debt on the shoulders of "our children".

With just over a week until the election, both men told voters during campaign speeches they were facing the defining vote of a lifetime.

Both parties have promised not to increase VAT, national insurance or the higher rates of income tax if they are elected next week, but the Conservatives have promised to enshrine the tax freeze in law.

Today, Labour unveiled a "Tory secret plan" website, which the party claims shows how the Conservatives will actually have to cut £58bn in public spending by 2019 and not the £13bn they claim to pay for all the giveaways the party has promised.

Mr Miliband said the Conservatives would cut tax credits, devastating family budgets, to pay for their policies. He said: "David Cameron will never put working families first in our country, instead he will put family budgets in the firing line."

He added: "Another five years of Tory government would mean a Tory secret plan that puts the prospects of working families at risk. Cuts to tax credits, cuts to child benefits, a threat to your family finances - 7.5m families losing an average of £760 a year.

"Working families cannot afford another five years of David Cameron and this Tory government."

At a later question and answer session Mr Miliband said: Labour leader Ed Miliband has mocked the Tory plans to introduce laws preventing tax rises.

During a question-and-answer session at Riba in central London, mocked the Conservative plan to pass a law preventing tax rises, reading out comments from George Osborne made in 2009.

Mr Miliband said: "I can't resist reading out this quote for you - 'No other chancellor in the long history of the office has felt the need to pass a law in order to convince people that he has the political will to implement his own budget'. George Osborne, November 26 2009."

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In a speech in the West Midlands, Mr Cameron guaranteed there would be no rise in the three taxes before May 2020 and said a Labour government would "load debt on the shoulders of our children".

"When it comes to your tax bill: do you trust the people who taxed you to the hilt when they were in power and still haven't come clean about the taxes they want to increase next time round?

"Or do you trust the Conservatives, who have cut income taxes for 26 million people, and who will cut your taxes again next time?

"We know it's your money, not Government money. You've worked for it, you've earned it, you should be able to keep it."

The Tories have said they will cut £12bn from welfare if they win the 7 May vote, but have only identified around £2bn of the savings.

Mr Cameron did not rule out cuts in tax credits when responding to Mr Miliband's claims but said: "I never want someone to be in a situation where working another hour or another shift cuts their [workers’] benefits or cuts their pay so they actually take home less. That is what universal credit, which of course will replace tax credits over time, is all about."

Shadow Chancellor Ed Balls earlier told Sky News the 40p tax threshold would rise in line with inflation but that he would like to "do it faster than that if I could". This will prevent more people being dragged into the higher tax rate threshold in a process known as "fiscal drag".

The Conservatives have promised to increase the 40p threshold to £50,000.

With eight days to go until the election, a YouGov (LSE: YOU.L - news) poll for The Sun suggested there was still very little between the main parties, putting Labour up one on 35%, Tories down one on 34%, Ukip and the Liberal Democrats unchanged on 12% and 9% respectively, and the Green Party down one on 4%.