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TAX BOMBSHELL

Top Tory Michael Fallon suggests Theresa May will scrap pledge not to raise income tax, VAT or national insurance leaving the door open to hikes if the Tories win June 8 election

ANOTHER senior Cabinet minister has suggested that Theresa May will scrap a pledge not to raise income tax, VAT or national insurance - leaving the door open to hikes if the Tories win the June 8 election.

Michael Fallon said this morning that the Conservatives were the party of "lower taxes", but that he didn't want them to commit to too many "prescriptive" targets in its upcoming manifesto.

 Chancellor Philip Hammond got smacked down by Conservative Party Chair Patrick McLoughlin
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Chancellor Philip Hammond got smacked down by Conservative Party Chair Patrick McLoughlinCredit: Getty Images

The news follows Philip Hammond's claim last week that the 2015 lock on taxes had "tied his hands" in running the economy.

He hinted the party could scrap its promise made by David Cameron prior to the last General Election - and sparked claims of another Budget Day raid on White Van man by upping National Insurance.

But last night the Tory Chairman Patrick McLoughlin said "no", it hadn't.

 Patrick McLoughlin does not agree that Mr Hammond's hands are tied due to David Cameron's 2015 'tax lock'
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Patrick McLoughlin does not agree that Mr Hammond's hands are tied due to David Cameron's 2015 'tax lock'Credit: Getty Images

Sir Michael told ITV's Good Morning Britain: "I think what he (Mr Hammond) said is he doesn't want too many targets inside the manifesto that are too prescriptive, that don't allow you, as the situation develops over the lifetime of the Parliament, that don't allow you the flexibility."

Asked if the Tories would recommit to not raising income tax, VAT or national insurance, Sir Michael said: "The manifesto will certainly make clear which side of this argument we're on - it's Labour governments that increase tax, it's Conservative governments that take the lower paid, in particular, out of tax."

 The Sun's campaign helped shut down the tax grab on the self-employed
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The Sun's campaign helped shut down the tax grab on the self-employed

David Cameron introduced the Tax Lock at the height of the 2015 Election campaign – ruling out any increase in tax between 2015 and 2020.

But Chancellor Mr Hammond was forced into a screeching U-turn earlier this year when he tried to introduce changes to National Insurance for the self-employed.

 Chancellor Philip Hammond paved the way for tax hikes for millions by hinting that David Cameron’s 2015 “Tax Lock” would be shelved
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Chancellor Philip Hammond paved the way for tax hikes for millions by hinting that David Cameron’s 2015 “Tax Lock” would be shelvedCredit: PA:Press Association

Thus far Mrs May has failed to repeat the pledge to keep the tax lock.

Manifestos are due out in the coming weeks ahead of the snap poll on June 8.

 

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