The Conservatives have yet to launch their election manifesto, but comments made so far on the campaign trail suggest the party is likely to consider abandoning its previous pledge not to raise income tax, VAT or national insurance taxes in the next Parliament
The so-called ‘tax lock’ was introduced by former prime minister David Cameron as part of the party’s pledges for the 2015 election.
However, when questioned about the pledge in media appearances over the weekend, prime minister Theresa May refused to state whether or not the same commitment would be in the new manifesto.
During an election campaign event in the west Midlands, May said: ‘At this election people are going to have a very clear choice, between a Conservative Party which always has been, is and will continue to be a party that believes in lower taxes.
‘Or the choice is a Labour Party whose natural instinct is to always raise taxes. ‘That is the choice, lower taxes under the Conservatives or higher taxes under Labour.’
However, May refused to answer questions on the tax lock or to be drawn on the specifics of any tax increases the Conservatives might consider.
This follows comments made by Chancellor Philip Hammond when on a visit to the US recently, when he said the tax lock did ‘constrain the ability of the government to manage the economy flexibly’.
Hammond also said: ‘I am not in the business of having some ideological desire to raise taxes. But I also think we need to manage our economy sensibly and sustainably.’
Last month’s Budget included Hammond’s plans to increase national insurance taxes for the self employed, in order to fund increased social care, which were overturned two days later on the grounds that the proposals were counter to the tax lock principles.
