Labour claims it can pay down deficit with no more tax rises

By Andrew Porter, Political Editor 1000PM GMT eleven Mar 2010

Liam Byrne, the arch cabinet member to the Treasury, additionally ruled out any climb in Vat if Labour was returned to office.

Mr Byrne, who is series dual at the Treasury, was asked either the necessity could be halved as Labour plans to do, but some-more taxation rises to cut borrowing. He replied yes, that no some-more were needed.

Labour claims it can compensate down necessity with no some-more taxation rises Britons will be poorer in entrance decades Pound falls as CBI warns borrowing will have to climb by an additional �100bn Tax rises and spending cuts are the usually approach to wand off larger suffering BAA warns bidders it will not bonus Gatwick notwithstanding �545m loss Taxes rises and spending cuts indispensable to rescue open finance management

He told the BBCs Daily Politics "We"ve set out only how we will find that �19bn, and we set that out in the Pre Budget Report."

The �19bn is the volume Labour hopes to lift from programmed taxation rises that will proceed in the entrance months and embody a inhabitant word climb and a travel in the rate that tip rate of income tax.

There has been conjecture that the Budget in dual weeks time could embody an enlarge in Vat from 17.5 per cent to twenty per cent. But again, this was ruled out by Mr Byrne.

He pronounced "We don"t see a need to do that since we"ve done a little formidable decisions about National Insurance contributions."

Mr Byrne is seen as a close fan of Gordon Brown and his comments are expected to simulate the wishes of Number 10. However, Mr Darling, the Chancellor, is expected to wish to keep options open for his critical pre-election Budget that he will broach on twenty-four March.

In the pre-Budget inform in Dec Mr Darling pronounced that the Government would separate the �178 billion necessity in 4 years.

Mr Brown and Ed Balls, the Schools Secretary and close fan of the Prime Minister, are penetrating to settle a "dividing line" over Vat. They hold that the Conservatives are personally formulation to lift Vat.

In the Commons on Wednesday Mr Brown described Vat rises as the lucky approach Conservative governments

He told MPs "We done a preference in Nov not to go forward with VAT but to go forward with the National Insurance rise. In fact, traditionally the celebration that has lifted VAT is the Conservative Party.

"It was them who lifted it to fifteen per cent, and afterwards they lifted it to 17.5 per cent. The Tory taxation is VAT and they have imposed it many, most times."

The Conservatives are instead expected to try and move to hindrance the programmed National Insurance cut.

Mr Byrne additionally claimed that Mr Darling would not broach a "giveaway Budget" after this month to try and woo electorate only weeks forward of the election.

He pronounced "I can discuss it you this is not going to be a big give-away Budget."

The City and concerned monetary markets are penetrating to see that Mr Darling has a convincing plan to residence the necessity rather than try and seaside up Labour support.