Labour set to rule out basic and higher rate income tax rises before election

Yesterday Ed Balls ruled out a VAT rise under a Labour government. Later that day, George Osborne refused on five separate occasions to make the same pledge. Perhaps that’s because the Tories have a track record of ruling out VAT hikes only to introduce them after elections.

By way of attempted counter-attack, George Osborne sought to claim that Labour would raise income tax rates. Whilst Balls and Miliband have already confirmed that the top rate of income tax would return to 50p from the current 45p rate, we’re expecting the party to rule out any increase in the basic (20p) or higher (40p) rate. The Evening Standard reported last night:

“Labour is also expected to include in its manifesto that it would not hike the basic or higher rate of income tax”.

A senior Labour source indicated to LabourList that the party has pledged not to raise those income tax rates in every manifesto since 1997 – and there’s no expectation that this won’t also be the case for the upcoming election.