View all newsletters
Sign up to our newsletters

Support 110 years of independent journalism.

Labour should pledge not to raise VAT

A promise not to raise this regressive tax would hand Brown one of the "dividing lines" he craves.

By George Eaton

As well as being the day that Gordon Brown finally announced that an election would be held on 6 May (he accurately described it as “the least well-kept secret of recent years”) today is also the day that the new 50p tax rate comes into force.

It’s not a bad day for this to happen. The new top rate of tax, like the one-off tax on bank bonuses, is one of the most popular policies Labour has adopted in recent years. A YouGov poll found that 68 per cent of voters support the introduction of the 50p rate.

With the economy defining this election like no other, the parties’ tax pledges will come under even more scrutiny than normal. Cabinet ministers, led by Ed Balls, have challenged the Tories to admit that they will need to raise VAT to plug the deficit.

George Osborne has insisted that he has “no plans” to increase VAT, but this is clearly a non-denial denial. As Sunder Katwala reminds us, the former Tory chancellor Geoffrey Howe similarly declared that “we have absolutely no intention of doubling VAT” during the 1979 campaign, and then did just that. Later, it was the Major government that raised VAT by 2.5 per cent to its current level of 17.5 per cent.

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team.
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

But until Labour issues a copper-bottomed guarantee that it won’t do the same, the party’s attack on the Tories won’t win over any voters.

The Labour manifesto, a preview of which appears in today’s Guardian, should contain such a pledge. A promise not to raise the most regressive tax of all would emphasise Labour’s commitment to fair taxation and would hand Brown one of the “dividing lines” he so craves.

The Tories’ promise to reverse part of the government’s planned National Insurance increase kick-started their faltering campaign. A promise not to raise VAT could do the same for Labour.

Follow the New Statesman team on Facebook.

Content from our partners
Where do we get the money to fix the world's biggest problems? – with ONE
Labour's health reforms can put patients first
Data science can help developers design future-proof infrastructure

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team.
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU