Brown refuses to rule out VAT rise

The prime minister has refused to commit to not increasing VAT under a future Labour government as he launched his party's election manifesto.

Speaking at the site of a new hospital in Birmingham, Gordon Brown unveiled a 76-page document which promises a "future fair for all". In it, the party commits to not raise income tax and reform public services but it does not rule out a controversial hike of VAT. When referring to the tax, Labour says: "We renew our pledge not to extend VAT to food, children's clothes, books, newspapers and public transport fares."

Questioned by journalists on whether he would commit to not increasing VAT, Brown said: "Our record is not to raise VAT when there are difficulties. Our plans are costed on the basis of not raising VAT." The prime minister said the commitment was consistent with pledges made in 1997, 2001 and 2005.

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