Conservatives pledge new law to 'freeze taxes', as General Election approaches
30 Apr 2015
As the General Election looms closer, the Conservative party has pledged to introduce a new law guaranteeing that there will be no increase in income tax, national insurance or VAT during the course of the next Parliament.
According to the party, the legislation would be brought in within 100 days of a Conservative government assuming power.
The latest pledges on taxation from the Conservatives also include a promise not to extend VAT to new items, and a pledge to align the upper earnings limit for national insurance with the higher rate threshold for income tax.
However, opposition parties and some economists have cast doubt on the claims, with Labour describing the announcement as ‘a desperate last minute gimmick’ and maintaining that the Conservatives will raise VAT in the future.
The Institute for Fiscal Studies has warned that the Conservatives are relying too heavily on income from unspecified tax avoidance measures to tackle the deficit, and has urged all of the main political parties to stop announcing ‘piecemeal changes’ to tax policy.