This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/8598386.stm

The article has changed 7 times. There is an RSS feed of changes available.

Version 1 Version 2
Labour hits back over Tory plans Tory tax 'deception' row erupts
(about 1 hour later)
Lord Mandelson has hit back after 23 captains of industry backed Tory plans to axe part of Labour's planned National Insurance rise. The leaders of 23 major UK firms have been "deceived" by a Conservative pledge to axe some National Insurance rises, Lord Mandelson has claimed.
The 23 bosses including Marks & Spencer's and Next's chiefs - said the 1% NI increase was a "tax on jobs" and would "endanger" economic recovery. He said the Tories could not make their sums add up without increasing VAT.
Tory leader David Cameron said it was a "significant" general election moment. But Tory leader David Cameron said his comments were "patronising" and "wrong" and showed Labour was "in meltdown".
But the business secretary said the Cosnervatives could not make their sums add up without increasing VAT. The 23 bosses, including Marks & Spencer's and Next's chiefs, said Labour's 1% NI increase was a "tax on jobs" and would "endanger" recovery.
He told a press conference at Labour Party campaign HQ the Tory policy was a "cynical deception" because it could not be done without putting up other taxes, such as VAT. Lord Mandelson said Tory plans to axe part of the increase were a "cynical deception" that could not be achieved without increasing VAT, as he said the Conservatives had done after winning elections in 1979 and 1992.
It is a significant moment in the election campaign... the heads of these biggest companies, employing 500,000 people, have said, in terms, that cutting government waste won't endanger the recovery but putting up National Insurance will David CameronConservative leader Company bosses back Tories
He said shadow chancellor George Osborne was "like a kid in a sweet shop, who thinks he can just grab sweets from every jar without paying for them".He said shadow chancellor George Osborne was "like a kid in a sweet shop, who thinks he can just grab sweets from every jar without paying for them".
He said he heard "very strong echoes of Mrs Thatcher" in what Mr Cameron had said about cutting spending on things such as regional development. "Of course there are some in business who are going to support what appears to be a pain-free tax cut. I mean, who wouldn't, if offered that?," said Lord Mandelson.
"But the point is, this is not pain-free and Mr Cameron and Mr Osborne are peddling a deception."
It is a significant moment in the election campaign... the heads of these biggest companies, employing 500,000 people, have said, in terms, that cutting government waste won't endanger the recovery but putting up National Insurance will David CameronConservative leader Company bosses back Tories
Chancellor Alistair Darling, appearing alongside Lord Mandelson at an election campaign-style press conference, said company bosses supporting the Conservatives in a letter were backing pledges made on a "wing and a prayer".Chancellor Alistair Darling, appearing alongside Lord Mandelson at an election campaign-style press conference, said company bosses supporting the Conservatives in a letter were backing pledges made on a "wing and a prayer".
He accused Mr Osborne of "double counting" and claimed the Conservatives were £22bn over budget - and the £6bn in efficiency savings they planned to use to axe the National Insurance increase was "illusory, non-specific and unbankable". He accused Mr Osborne of "double counting" and claimed the Conservatives had a £22bn "credibility gap" in their economic plans - although he conceded this had gone down from the £34bn gap previously claimed by Labour.
He said the £6bn in efficiency savings the Conservatives planned to use to axe the National Insurance increase were "illusory, non-specific and unbankable".
Mr Darling said Mr Osborne was producing "panic" plans based on "the next day's headlines".
And he urged the business leaders who signed the letter to "have a long look at what the Tories are up to and then they might just have some serious questions to ask".And he urged the business leaders who signed the letter to "have a long look at what the Tories are up to and then they might just have some serious questions to ask".
'Wrong time' class="lp" href="http://news.bbc.co.uk/1/hi/talking_point/default.stm">HAVE YOUR SAYA rise in employers' NI is a tax on jobsTio Terry class="" href="http://www.bbc.co.uk/blogs/haveyoursay/2010/04/do_you_agree_with_business_lea.html">Send us your comments
He said no chancellor could rule out future increases in VAT - but said he had ruled such a move out last year when he was planning how to cut the budget deficit.
'Significant moment'
If they win the election, the Conservatives plan to scrap the planned April 2011 National Insurance rise for anyone earning less than £45,400 a year, which they say would save people £150 a year on average and also reduce the tax burden on firms.If they win the election, the Conservatives plan to scrap the planned April 2011 National Insurance rise for anyone earning less than £45,400 a year, which they say would save people £150 a year on average and also reduce the tax burden on firms.
Mr Cameron told BBC Radio 4's Today programme halting the tax increase was not in conflict with his party's plan to cut Britain's record budget deficit. Mr Cameron said the plan would not hamper efforts to cut Britain's record budget deficit - or mean an rise in VAT.
Speaking on a campaign visit at a B&Q store, he said: "Our plans don't involve an increase in VAT.
"We say it's wasteful spending that's cut, rather than putting up taxes, as the government suggest."
He said the backing of 23 leading business people was a "very significant moment" in the election campaign that showed the Tories "have got it right and Labour have got it wrong".
"Labour, today, to say somehow Britain's business leaders have been deceived is patronising, wrong, will backfire, and shows that their plans are in meltdown," he added
David Cameron: "There is a threat to the recovery from putting up National Insurance"David Cameron: "There is a threat to the recovery from putting up National Insurance"
"We are finding savings in government spending in 2010, net saving of £6bn, which means we'll be borrowing £6bn less, and that allows us in 2011, having got public spending on a lower path to stop this damaging tax rise that hits people earning over £20,000 and is a tax on jobs for every employer, on anyone earning over £5,700. Among the high-profile businessmen to back Mr Cameron are Marks & Spencer chief executive Sir Stuart Rose, Sainsbury's boss Justin King and Easygroup's Sir Stelios Haji-Ioannou.
"And it is a significant moment in the election campaign, I think very significant, that the heads of these biggest companies, employing 500,000 people, have said, in terms, that cutting government waste won't endanger the recovery but putting up National Insurance will."
The endorsement of Mr Cameron's position comes from a group of high-profile businessmen, including Marks & Spencer chief executive Sir Stuart Rose, Sainsbury's boss Justin King and easyGroup's Sir Stelios Haji-Ioannou.
Writing to the Telegraph, the business leaders said the proposed NI increase was an "additional tax on jobs" and would come into effect "at exactly the wrong time in the economic cycle".Writing to the Telegraph, the business leaders said the proposed NI increase was an "additional tax on jobs" and would come into effect "at exactly the wrong time in the economic cycle".
BBC political correspondent Ross Hawkins says the businessmen - which include some who are well known Tory supporters but also two who sit on the prime minister's business council - have an obvious incentive for opposing a tax rise that will cost their companies money.BBC political correspondent Ross Hawkins says the businessmen - which include some who are well known Tory supporters but also two who sit on the prime minister's business council - have an obvious incentive for opposing a tax rise that will cost their companies money.
However, he added that their endorsement would be a boost for the Tories and their shadow chancellor George Osborne, as they seek to demonstrate the credibility of the party's economic plans. However, he added that their endorsement would be a boost for the Tories and shadow chancellor George Osborne as they seek to demonstrate the credibility of the party's economic plans.
The full list of signatories of the letter: Sir Anthony Bamford (JCB); Bill Bolsover (Aggregates Industries); Dominic Burke (Jardine Lloyd Thompson); Ian Cheshire (Kingfisher); Neil Clifford (Kurt Geiger); Mick Davis (Xstrata); Aidan Harvey (Tullow Oil); Lord Harris (Carpetright); Justin King (Sainsbury's); Sir Chris Gent (GlaxoSmithKline); Ben Gordon (Mothercare); John Lovering (Mitchells and Butler); Graham Mackay (SAB Miller); Alistair McGeorge (Matalan); Nicolas Moreau (Axa UK); Stephen Murphy (Virgin Group); Alan Parker (Whitbread); Sir Stuart Rose (Marks and Spencer); Paul Walsh (Diageo); Joseph Wan (Harvey Nichols); Simon Wolfson (Next); Zameer Choudrey (Bestway Cash and Carry); Sir Stelios Haji-Ioannou (easyGroup)The full list of signatories of the letter: Sir Anthony Bamford (JCB); Bill Bolsover (Aggregates Industries); Dominic Burke (Jardine Lloyd Thompson); Ian Cheshire (Kingfisher); Neil Clifford (Kurt Geiger); Mick Davis (Xstrata); Aidan Harvey (Tullow Oil); Lord Harris (Carpetright); Justin King (Sainsbury's); Sir Chris Gent (GlaxoSmithKline); Ben Gordon (Mothercare); John Lovering (Mitchells and Butler); Graham Mackay (SAB Miller); Alistair McGeorge (Matalan); Nicolas Moreau (Axa UK); Stephen Murphy (Virgin Group); Alan Parker (Whitbread); Sir Stuart Rose (Marks and Spencer); Paul Walsh (Diageo); Joseph Wan (Harvey Nichols); Simon Wolfson (Next); Zameer Choudrey (Bestway Cash and Carry); Sir Stelios Haji-Ioannou (easyGroup)