David Cameron rules out VAT increase at PMQs

 

David Cameron ruled out an increase in VAT if he retains power at the general election in his final Commons clash with Ed Miliband before polling day.

The prime minister said this was a "clear promise" and challenged the Labour leader to rule out increasing National Insurance.
Mr Miliband said "nobody would believe" Mr Cameron's pledge, because his government had raised VAT in 2010.

   

The clash took place in an end-of-term atmosphere in the Commons.
Mr Cameron's announcement potentially neutralises one of Labour's main lines of attack - as seen on an election poster unveiled this week - that the Conservatives are secretly plotting to increase VAT because they will not be able to make their spending cut plans work without it.
The announcement appeared to take Conservative MPs by surprise, especially after Chancellor George Osborne repeatedly declined to rule out a VAT increase when questioned by MPs on Tuesday.
Mr Miliband began his final encounter with Mr Cameron before the election by joking that the PM had "announced his retirement plans" - a reference to a BBC interview in which the prime minister said he would not serve a third term if the Tories remained in power.

'Straight answer'

Challenging Mr Cameron to give a "straight answer to a straight question", Mr Miliband pressed him on whether he would rule out a rise in VAT after the election, as Labour had done.
In response, the prime minister immediately said "yes", prompting loud cheers in turn from the Conservative benches.
He contrasted what he said was a "clear promise" with Labour's unwillingness to rule out a rise in National Insurance.
"I answered a very simple question about VAT. I ruled out an increase... straight answer to him, straight question from me. I have ruled out VAT. Will he rule out national insurance contributions. Yes or no?"
Mr Cameron added: "We all know this is Labour's job tax. This is their tax of choice. This is what they clobber working people, families and enterprises with."

But Mr Miliband responded by saying there was "only one person who is going to raise taxes on working families and that is him".
He said nobody would believe Mr Cameron on VAT "because of his extreme spending plans, because his numbers do not add up and because he promised it last time and broke his promise".
Mr Cameron, he added, had broken other promises made before the last election to reduce annual net migration below 100,000 and not to pursue a major structural re-organisation of the NHS.

'Held hostage'

In their last head-to-head exchanges before the election, Mr Miliband said that it was "time for a better plan and time for a Labour government".
But Mr Cameron suggested a future Labour government would result in the "chaos of economic crisis", with Ed Miliband being "held hostage" by the SNP.
The packed session provided a last opportunity for the two men to rally their MPs and set out their arguments before the start of the election campaign next week.
Parliament is expected to be prorogued on Thursday ahead of a six-week campaign culminating in the 7 May poll.
The two men first faced each other across the despatch box in October 2010.

• PMQs is a weekly opportunity for the leader of the opposition and backbenchers from all parties to question the prime minister
• The session lasts about thirty minutes, with the leader of the opposition allocated six questions and backbenchers entering a ballot to pose questions
• This will be the 162nd and final PMQs of the current Parliament.
• David Cameron has taken part in 151 sessions since May 2010, with Nick Clegg and William Hague substituting for him on 11 occasions
• Before 1997, the session took place twice a week, lasting 15 minutes on Tuesday and Thursday afternoons
• The first televised PMQs was on 21 November 1989, when Margaret Thatcher clashed with Neil Kinnock
• Tony Blair has the highest attendance record of any recent prime minister, attending 95% of sessions between 1997 and 2007

Mr Cameron said recently that he did not "enjoy" PMQs while Mr Miliband has spoken of the need to change the combative tone of the weekly encounter.
The next PMQs is not expected to take place until the end of May, once the make-up of the new government has been decided.
Reflecting on the last PMQs, former Conservative leader William Hague - who is standing down as an MP in May - said the occasion was an important part of British democracy but "did not necessarily change the outcome of general elections".
"The one before the election is when party leaders want to send their supporters off to their constituencies with high morale and good arguments," he said.