Philip Hammond hints Tories may drop pledge not to raise taxes or NI in manifesto as he says ministers need to have ‘flexibility’ on economy
The Chancellor said today that David Cameron's 2015 promises "constrain" the Government
THE CHANCELLOR today paved the way for shock tax hikes for millions by hinting the Tories will scrap a 2015 ‘Tax Lock’ promise.
Philip Hammond said that David Cameron's 2015 promises "constrain" the Government.
The former PM promised in the last election not to raise taxes, VAT or National Insurance.
Mr Hammond was forced into a humiliating climb-down by The Sun earlier this year when he tried to change National Insurance contributions for the self-employed.
The Lib Dems said it was clear Philip Hammond was “out to bash White Van Man yet again”.
Speaking at the IMF in the US, the Chancellor said: “I’m not in the business of having some ideological desire to increase taxes.
“But I also think we need to manage our economy sensibly and sustainably.”
“It’s self-evidently clear that the commitments that were made in the 2015 Manifesto did and do today constrain the ability of the government to manage the economy flexibly.”
The election manifesto for the upcoming vote has yet to be finalised.
Experts said the Chancellor’s comments all-but confirmed the ‘Triple Lock’ protecting state pension payouts for millions of OAPs will also go.
They left senior colleagues stunned given the Prime Minister had just finished her first big Election rally of the campaign in her Maidenhead constituency.
One said: “He always does this when he goes abroad.”
A Tory campaigner told the Sun: “It’s going to be absolute hell explaining this on the doorstep.”
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David Cameron issued the Tax Lock at the height of the 2015 Election campaign against Labour’s Ed Miliband almost exactly two years ago.
In the pledge, the Tories ruled out any rises in income tax, VAT or national insurance before 2020.
It caused chaos last month when the Chancellor stunned Tory MPs by announcing a 2p NI rise in the Budget.
He initially insisted it didn’t breach the Tax Lock because the increase was only for self-employed workers.
But just one week later Theresa May scrapped the idea after a huge rebellion from Conservative ranks.
Panic struck Treasury sources yesterday insisted Mr Hammond’s incendiary comments were about the 2015 Manifesto – and that he wasn’t referring to the upcoming promises.
Senior Conservative campaign source : “Absolutely no decision have been made – it was in no way a hint towards the Manifesto.”
But insiders said the Chancellor has privately expressed the desire to have “as free a hand as possible” for months.
Lib Dem chief Tim Farron yesterday said: “It’s clear what the Chancellor is planning, he wants to axe the ‘Tax Lock’.
“Philip Hammond is out bash White Van Man yet again. The Tories just don’t care and think they can do whatever they want.
“How can they bash strivers like this?”
John O’Connell, chief executive of the TaxPayers Alliance, said: “Governments shouldn’t put themselves into positions whereby they resort to raising taxes by stealth.
“It would be far better for the Chancellor to pledge to reduce the overall tax burden which is set to rise to a 30 year high under his watch.”
Mike Cherry, Federation of Small Business national chairman, signalled it could cost the Tories vital votes. He told the Sun: “A key test for political parties in this election is what they plan to do to support Britain’s 4.8 million self-employed strivers.
“Any plan to clobber them with a tax hike would be a real kicking for this motivated group of voters in every constituency, from Basildon to Berwick.”
And today Theresa May DID confirm that she would keep the hated pledge to spent 0.7 per cent of GDP on aid.
The PM said today that that promise would stay.
She said it “remains and will remain”, after figures ranging from Bill Gates and charity bosses to the former Archbishop of Canterbury have lobbied her to keep it.