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Cameron Rules Out VAT Rise In Next Parliament

Prime Minister David Cameron has ruled out a rise in VAT in the next parliament if the Conservatives are in power after the election.

In the final head-to-head debate with Ed Miliband before the election, he appeared to wrong-foot the Labour leader by unexpectedly ruling out an increase in the tax.

As his opening question, Mr Miliband asked whether the Prime Minister would give a straight answer and rule out a VAT rise if his party forms the next Government.

Mr Cameron replied - apparently muddling some of his words: "He's right, straight answers deserve straight questions, and the answer's yes."

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The Prime Minister - watched by his wife and children from the public gallery - countered by demanding that Mr Miliband rule out a rise in National Insurance contributions, but he would not.

Mr Cameron said: "This is Labour's jobs tax, this is their tax of choice, this is what they clobber working people, families, enterprises with."

The exchange opened with Mr Miliband joking about Mr Cameron's "retirement plans", after he said he would only serve one further term .

Mr Cameron shot back: "In 43 days time I plan to arrange his retirement, Mr Speaker."

Later, the Prime Minister touched on the support touted by the SNP's Alex Salmond for Labour in the event of a hung parliament.

He said: "As far as I can see Alex Salmond has taken the entire Labour Party as hostage and then today we’ve got the ransom note."

A separate head-to-head television debate between the pair before the election will not take place after Mr Cameron declined to take part.

However they have both agreed to appear separately in a live question-and-answer session hosted by Sky News and Channel 4 on Thursday at 9pm.