June 2024: In a significant pre-election pledge, Labour, the Conservatives, and the Liberal Democrats have all ruled out raising Value Added Tax (VAT) if they win the upcoming general election. Chancellor Jeremy Hunt confirmed the Conservatives’ commitment in a Telegraph article, challenging Labour to do the same. Shadow Chancellor Rachel Reeves subsequently dismissed claims of a planned VAT increase or hike as “nonsense” and affirmed Labour’s stance against raising VAT.
This commitment means that both Labour and the Conservatives have ruled out increasing VAT, income tax, and National Insurance, the primary sources of revenue from personal taxation, for the next Parliament. However, Chancellor Hunt acknowledged that income tax would still rise due to frozen thresholds until 2028, a policy that Labour also intends to follow.
The announcement comes as the main parties exchange critiques over their fiscal policies, with Labour promising economic stability and ruling out further tax increases beyond those already announced. The Liberal Democrats also pledged not to raise VAT, income tax, or National Insurance, emphasizing fair taxation without burdening working people.
This tax policy debate highlights the broader economic strategies of the parties as they prepare for the official election campaign period.
For more information, visit BBC News.
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