Brown pressed over tax promises

Gordon Brown says all election promises will be kept

Chancellor Gordon Brown has said he will stick to his election promises on the economy, but has refused to answer questions about possible tax rises.

Newspapers say Labour's manifesto will rule out income tax rises, but leave the option to raise National Insurance.

Mr Brown said he would only comment when the manifesto was published, but said all his plans were affordable.

The Tories are offering modest tax cuts. The Lib Dems want a new 50p rate of income tax on the highest earners.

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Tax and spending

Reports in the Daily Telegraph and the Independent suggest Labour's manifesto will pledge not to increase income tax rates, but will not include National Insurance in that commitment. Labour raised NI in 2002 to boost NHS spending.

Asked for a commitment taxes would not rise under Labour, Mr Brown told BBC Radio 4's Today programme: "You will see what we promise on taxation when our manifesto is published."

"All the promises we make at the election will be promises we will keep during the next Parliament," he said.

The Conservatives would put stability at risk with a new monetary and fiscal policy Gordon Brown

And he again rejected claims taxes would have to rise if Labour won the 5 May election, to fill a suggested multi-billion pound "black hole" in his financial plans.

He said the "dividing line" at the election would mark out the parties that wanted "to move forward and make an economic future where there are more jobs and more opportunities".

"While the Conservatives, as we now know, would put stability at risk with a new monetary and fiscal policy as well as abolishing the New Deal," he said.

Not enough jobs

Later he announced plans to extend the New Deal, Labour's scheme aimed at getting the young unemployed back to work through subsidised jobs and training.

The Tories say they would scrap it because it does not provide enough long-term jobs.

But Labour wants to see it extended to new areas such as unemployment among ethnic minorities and lone parents. Money saved would go to fund education, said Mr Brown.

The Tories, who have promised £4bn tax cuts financed by "efficiency savings", agree the economy is a dividing issue between the parties.

I think most people accept there is going to be a rise in the burden of taxation Charles Kennedy

Shadow Chancellor Oliver Letwin said the Conservatives would continue to increase spending on services like hospitals, schools and the police, but were determined to get better value for taxpayers' money.

Mr Letwin said voters had a choice between a Conservative government that would grow public spending at 4% a year, and a Labour one at 5% a year.

"That is a crucial difference," he said.

"The first, our plan, is something the nation can afford and will mean we can have lower taxes, the second is above what the nation can afford and will mean raising taxes."

Liberal Democrat leader Charles Kennedy said all the parties' pledges came "with a price tag".

"I think most people accept there is going to be a rise in the burden of taxation as a result of this election," he said.

"We are the only one saying how this can be achieved. It's an honest option we're putting in front of people at the election.

"Our balance sheet is balanced, our sums add up, and that's why we go into this election with credibility and confidence."