George Osborne refuses to confirm or deny post-election Tory VAT rise

LONDON (ShareCast) - George Osborne has been accused of refusing five times to give a "cast-iron guarantee" on whether he will raise VAT if he stays on as chancellor following the general election in May. Osborne has been asked about the issue ever since Labour member Ed Balls revealed his party would eliminate a rise in VAT in its general election manifesto, warning that the Conservatives would likely increase the tax on goods and services, according to The Guardian.

Labour MPs John Mann and Andy Love each questioned Osborne during a Treasury committee session but he refused to flat-out confirm or deny whether a VAT increase would occur. Instead, he again said he had no plans at this stage to raise VAT.

He added that Labour would be forced to increase VAT, national insurance or income tax if the party continues to oppose Conservative spending cuts.

Osborne said: "I have identified where the £30bn of savings I believe need to come from and they don't involve a VAT rise.

"The question for those who say they are going to try to balance the books but say it mainly has to be done through tax, as the official opposition does, has to spell out what those big tax rises are.

"And it's pretty clear today that they have opened the door to a big increase in National Insurance and the 'jobs tax', and I think it would be very, very damaging for this country."