Political parties locked in spending battle

David Cameron has accused Labour preparing a tax raid on working people as Ed Miliband claimed the Conservatives had a “secret plan” to slash tax credits for millions of families.

With eight days to polling day, the two main parties were locked in an increasingly frenetic battle over the implications of their spending plans for voters.

Mr Cameron unveiled his promised legislative “tax lock” guaranteeing there would be no increases in income tax, VAT or national insurance for the next five years.

The move was dismissed as a “desperate gimmick” by Labour who claimed the Conservatives would have to cut tax credits by £3.8 billion to make their spending plans add up.

The row came as a new Ipsos MORI poll for STV News suggested that the SNP was set to make a clean sweep of all 59 seats in Scotland, adding to the pressure on the Labour leader.

In a keynote campaign speech in Birmingham, the Prime Minister said he was able to make his commitment not to raise taxes because he had “seen the books”.

“I know what needs to be done without reaching into the wallets of hard-working people and taking their money,” he said.

“So here’s the choice. You get me, you get that guarantee about taxes. You get Ed Miliband and you’ve got someone who attacked every single spending reduction and saving that we had to make.

“Every single change to welfare he has opposed. You can only draw one conclusion from that. He would make a different cut. He would put up taxes, reach into your pay packet and cut your pay.

“That’s the choice. I say working people in this country have paid enough tax.”

For Labour, shadow chancellor Ed Balls said the Conservatives had been forced to promise legislation because they had lost the trust of voters.

“These promises were made by David Cameron in his manifesto. He has decided three weeks on, people aren’t believing them, he is going to try again.

“But the reason is people remember before the last election he promised not to raise VAT and he raised it and he said it was a ‘lie’ that he would cut tax credits and then he cut tax credits for millions of families in our country.”

At a campaign event in London, Mr Balls and Mr Miliband released an analysis which they said showed that 7.5 million families would see their tax credits cut under a Tory government to the tune of an average £760 a year.

“We’ve heard a lot from David Cameron in the last five weeks about what he says he will do for working people. But they are false promises,” Mr Miliband said.

“Instead he will put family budgets in the firing line. If the Tories get back in on May 8, family budgets will be hit.

“Today we show what another five years of Tory government would mean. A Tory secret plan. A plan that puts the prosperity of your family at risk. Cuts to tax credits. Cuts to child benefit. A threat to your family finances.

“Working families can’t afford another five years of this Tory government. And if the Tories deny it, ask yourself why yet again today they haven’t ruled out making changes to tax credits or child benefit?”

Labour said the result would be families with one child losing tax credits when their incomes hit £23,000 a year, leaving them more than £1,600 a year worse off. Those with two children could lose credits after earning £29,000, at a cost of £2,000 a year, and families earning £12,000 a year will lose at least £550, said Labour.