Election tax plans in spotlight

Tax and spending has again come to the fore

Tax has become a key battleground as the main parties traded blows on day three of the election campaign.

Labour is claiming the "dividing lines" over the economy are clear and it is the party which should be best trusted.

But Chancellor Gordon Brown is under pressure over whether he would rule out post-election tax rises.

The opposition parties also took on Labour on public services, with the Tories targeting "dirty hospitals" and the Lib Dems highlighting education.

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Tax and spending

Thursday also saw Parliament breaking up ahead of the election - it will be formally dissolved on Monday.

CAMPAIGN SCHEDULE Labour launches posters on who can be trusted on the economy Tories highlight plans to put matrons in charge of hospital cleanliness Lib Dems focus on education plans, including scrapping university fees Greens launch "people, planet, peace" election themes UKIP starts vote fraud complaints website At-a-glance: Day 3 Your views: Economic trust

Newspaper reports suggest Labour's manifesto will rule out rises to the basic and top rates of income tax but not rule out further national insurance increases.

Mr Brown refused to confirm the plans but told BBC News his plans were affordable and he would keep his poll pledges.

"You will see what we promise on taxation when our manifesto is published," he said.

On Wednesday, the prime minister indicated he planned to keep Mr Brown on as chancellor if Labour won a third term, after rumours he could be moved to the Foreign Office.

'Dividing lines'

The pair joined up again on Thursday to unveil two election posters. One pictured Mr Blair next to Mr Howard with the question: "Who do you want to run the country?"

The second, featuring Mr Brown and Tory rival Oliver Letwin, asks: "Who do you want to run the economy?"

Mr Brown attacked the Tories' decision to replace sacked MP Howard Flight with think tank chief Nick Herbert as their candidate in Arundel.

The Tories are focusing on improving hospitals

Mr Flight had suggested Tory plans for reducing public spending went further than the party had admitted.

The chancellor said Mr Herbert had echoed that view in a November 2002 Spectator magazine article.

Mr Brown said the episode showed the "huge dividing line" on economic policy, with the Tories preparing for "massive" spending cuts.

Hospital campaign

The Conservatives say Mr Herbert's comments were taken out of context and their published plans show they would increase spending, but more slowly than Labour.

The Tory leader rejected claims he did not want to talk about the economy.

He told GMTV: "What I can promise you is that people will pay less tax under a Conservative government than under a Labour government."

Tony Blair and Gordon Brown unveiled two posters

Mr Howard, who later visited Winchester, is highlighting plans to tackle "dirty hospitals" and combat hospital superbugs.

He told reporters: "Patients are dying because of Mr Blair's targets."

The Tories want matrons to be able to decide whether wards need to close for cleaning.

Labour says it has given matrons more powers but they need to consult over ward closures to ensure patients do not spread infections by moving around hospitals.

Diploma system

Meanwhile, the Lib Dems have unveiled their education manifesto.

In Exeter Charles Kennedy renewed his pledge to cut class sizes for five to 11-year-olds, replace the national curriculum and overhaul the current GCSE and A-level systems.

He said: "We believe that access to a quality education is a fundamental right of every child."

The Lib Dem leader gave details of proposals to bring in a diploma system for pupils aged over 14, offering a mix of vocational and academic education.

Bicycle stunt

And he underlined his pledge to scrap tuition fees saying: "We should not be saddling our young people with huge debts as they start out in life."

The Green Party meanwhile used bicycles to launch their election campaign themes of "people, planet, peace".

And the UK Independence Party is creating a 'Postal Voting Fiddle' website for voters with worries about electoral fraud.

Plaid Cymru staged an event for young supporters and candidates at a Cardiff Cybercafe.