Theresa May rules out increase to VAT before 2022 but not hikes to income tax and National Insurance prompting fears of tax raid on higher earners

30 Apr

She said: “We have no plans to raise the level of tax. In relation to specific taxes, we won’t be increasing VAT.”

There were also “no plans to increase the level of tax” but Mrs May only committed to cutting tax for “working families”, who were defined by the Government earlier this month as those on incomes below £33,000 a year.

Earlier yesterday Mrs May told the Andrew Marr Show on BBC 1: “We have absolutely no plans to increase the level of tax but I’m also very clear that we don’t want to make specific proposals on taxes unless I’m absolutely sure that I can deliver on those.

“But it would be my intention as a Conservative government and as a Conservative prime minister to reduce the taxes on working families. And if you’ve got strong and stable leadership that’s absolutely what you can do.”

Mrs May might try to replace the current tax lock with a more vague commitment not to increase the overall level of tax when the party’s manifesto is published next week.

There was speculation – which was strongly denied by Mrs May’s aides – that capital gains tax might be levied on sales of main homes worth over £5million.

State pensions would also continue to rise over the next five years but there was no commitment to maintain the triple lock which ensures the state pension increases in line with wages, inflation or by 2.5 per cent – whichever is the highest, she said.

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