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Page last updated at 13:35 GMT, Wednesday, 26 November 2008

Brown and Cameron clash over VAT

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Tory leader David Cameron has clashed with Gordon Brown over what he claims is a secret VAT "tax bombshell".

In robust Commons exchanges during Prime Minister's Questions, Mr Cameron said a leaked document showed the government had been planning a VAT increase.

Mr Brown admitted ministers considered increasing VAT to 18.5%, or higher, but had now rejected such a move.

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