PM Cameron uses last parliament clash before election to rule out tax rise

LONDON (Reuters) - British Prime Minister David Cameron used his last debate in parliament before a national election on May 7 to try to push his Conservative Party ahead of opposition Labour in stagnant opinion polls by ruling out a rise in value added tax. With both parties neck-and-neck in polls and the economy likely to be a decisive factor in the election, Cameron wrong footed Labour leader Ed Miliband who challenged him to rule out a rise in VAT -- by doing just that. "The answer is yes," said Cameron when asked to pledge he would not raise the consumption tax, which is currently set at a standard rate of 20 percent. "I ruled out an increase." The Conservatives had previously said an increase was not in their plans, but had stopped short of ruling one out. Labour this week launched a poster campaign, warning voters Cameron would have to increase VAT if re-elected to pay for planned cuts to public service. Miliband said nobody would believe Cameron's promise and that it was time for a new government. "This has been a government of the few for the few," he said, to loud cheers and jeers. "It's time for a Labour government." (Reporting by William James and Stephen Addison; Editing by Andrew Osborn)