“No intention, no proposals, no plans” – Labour’s stinging new video hits Tory record on raising VAT

Shadow Chancellor Ed Balls this morning made a manifesto commitment that Labour would not raise or expand VAT. This was followed by the launch of a new, hard-hitting poster on the issue:

Now, Labour have proved just how strong they are going on VAT, with a new video highlighting the Tories’ past pre-election promises not to raise the tax – followed by hiking it once the election is out of the way.

Subtly titled ‘VAT: The tax the Tories love to raise’, the video charts three times the Tories have said they would not raise VAT:

• Before the 1979 election, then Shadow Chancellor Geoffrey Howe said the Tories had “no intention” of raising VAT. After the election, it was raised from 8% to 15%.
• Before the 1992 election, Chancellor Norman Lamont said he had “no need, no plans, and nor proposals to raise or extend the scope of VAT”. After the election, the scope of VAT was extended to gas and electricity bills.
• Before the 2010 election, David Cameron said there were “no plans” to raise VAT. In 2011, VAT went up to 20%.

Now, Cameron and Osborne once again claim that VAT will not go up. It’s well worth watching.

This may be an attack ad, but comes down on the Tories’ record on a tax that is shown to hit low earners hardest – rather than the Conservatives’ own recent efforts on a Miliband/Salmond deal. It’s also worth noting that Tory chairman Grant Shapps refused to rule out a VAT hike to pay for the tax cuts Cameron announced in his conference speech last year.