Blair may face Brown in tax stand-off
The prime minister is likely to clash with chancellor Gordon Brown over election pledges to leave basic and higher rates of income tax unchanged if Labour is re-elected.
Tony Blair made a similar pledge in the 1997 election, but could face opposition from Brown, after the chancellor’s aides said Labour should instead offer targeted tax cuts when affordable, the FT reported today.
The aides claim a tax pledge will tie Labour’s hands when the government has already proven itself to be economically and fiscally prudent.
However, Labour has put unchanged taxes rates at the top of its election manifesto in an effort to hit back at Tory accusations that it would have to raise taxes to fund its public spending plans.