Osborne and Labour row over tax

Date: 21st September 2009

Conservatives believe that Gordon Brown would raise income tax if he wins the next general election.

George Osborne, the shadow chancellor, claimed that government documents show an overall projecting increase in tax receipts for the 2011/12 financial year to £14.8 billion.

Extrapolating from this data, the basic rate of income tax might have to increase by 3p to fund this increase.

Conservative figures also show that the bill of the average household could increase by £2,770.

Mr Osborne said: "Labour's secret spending plans, which Gordon Brown never wanted to make public, appear to reveal an income tax bombshell."

However, Labour say that an increased tax take will come from policies that they have already announced.

From next April, the top rate of income tax for those earning £150,000 per year will increase from 40p to 50p.

Meanwhile, a general economic recovery from the credit crunch-induced recession would also swell receipts from VAT and corporation tax.

Liam Byrne, a treasury minister, said: "The shadow chancellor needs to answer why he is trying to mislead the British people."