Darling 'planned increase in VAT'

Former chancellor Alistair Darling admiited he wanted to increase VAT
12 April 2012

Former chancellor Alistair Darling has admitted that he wanted to raise VAT to bring down Britain's budget deficit.

Former business secretary Lord Mandelson claimed in his memoirs that Mr Darling planned the move last year but was vetoed by Gordon Brown.

The now-shadow chancellor told BBC's Andrew Marr Show: "It's no secret, I said at the time and since Peter has actually spelt out in gory detail, I'm not going to deny what was patently true."

Asked whether his proposal to increase VAT was a "battle" he wished he had won, Mr Darling replied: "Yeah, obviously."

He went on: "There was a choice really - you could put up VAT or you could put up an income-related tax, which is what the National Insurance is.

"Actually the present Government have got both - it's been rather missed that they're putting up National Insurance and the VAT's going up.

"The advantage of VAT is that it brings a lot of money, it would have allowed you to do a lot to take down the deficit but also given you money to spend on things that actually matter.

"It would have ameliorated some of the worst effects of reductions."

Mr Darling warned that the coalition Government was taking a "hell of a risk" with austere measures to tackle the deficit.

He said he would return to the backbenches for "a year or so" following the Labour leadership election in September, but did not rule out a return to the party's top team in the future.

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