Election Battle Focus Falls On Tax Pledge Row

Family finances have moved to the heart of the General Election battle, as David Cameron promised not to increase the three main taxes.

Labour leader Ed Miliband, meanwhile, accused the Conservatives of planning a £3.8bn raid on tax credits for the lower-paid.

The Prime Minister said he would introduce legislation to guarantee a "tax lock", banning hikes in the rates of income tax, VAT or national insurance until May 2020.

But Labour - who have also vowed not to raise VAT, national insurance or the main and higher rates of income tax, while returning the top rate tax level at 40p - dismissed Mr Cameron's pledge as a "desperate last-minute gimmick" which voters would not believe.

Mr Miliband said he would publish analysis showing Mr Cameron was planning to reduce tax credit rates, costing a family with one child £1,600 when their income goes above £23,000 and those with two children £2,000 if they earn over £29,000.

He also promised Labour would increase tax credits at least in line with inflation every year.

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Shadow Chancellor Ed Balls told Sky News the Conservative big freeze promise was a "last-minute election gimmick". He said Mr Cameron had broken his promise on VAT in 2010 and asked why voters would believe the Conservative leader now.

He said: "He made these promises before the last election and broke them."

Mr Balls also said that 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 also promised to increase the 40p threshold.

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.

A party spokesman did not rule out cuts in tax credits when responding to Mr Miliband's claims

It comes as Liberal Democrat leader Nick Clegg is joined on the campaign trail by wife Miriam to launch a £610m promise of free school meals for all primary school children in England.

UKIP's Nigel Farage is taking a break from campaigning to go to the European Parliament in Strasbourg, to help fight a call for EU nations to help resettle migrants arriving by boat in Italy.

He claims the plan amounts to a common EU migration and asylum policy.

Meanwhile, 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%.