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| Leaders clash on tax and spending | |
| (20 minutes later) | |
| Gordon Brown and David Cameron have attacked each other over their plans for the economy, in their final Commons clash before the election. | |
| Tory leader Mr Cameron attacked the PM over his record on pension funds, the armed forces and his planned "tax on jobs" - raising National Insurance. | |
| But Mr Brown said it was the "same old Conservative Party" which would put public services "at risk". | |
| Lib Dem leader Nick Clegg told both: "You've failed... It's time to go". | |
| In rowdy clashes Mr Brown and Mr Cameron each accused the other of policies that would wreck the economy - the day after Mr Brown called the general election for 6 May. | |
| It comes as the parties each highlight their plans for political reform - including changes to the voting system - a subject which has been increasingly discussed in the wake of the MPs' expenses scandal. | |
| There is also horse-trading over which outstanding legislation will be allowed to become law before the election. | There is also horse-trading over which outstanding legislation will be allowed to become law before the election. |
| Cider tax | Cider tax |
| Negotiations will continue between the parties for the last two working days of Parliament, the period known as the "wash-up" before it is dissolved on Monday, with several key measures already dropped from the Finance Bill. | Negotiations will continue between the parties for the last two working days of Parliament, the period known as the "wash-up" before it is dissolved on Monday, with several key measures already dropped from the Finance Bill. |
| The Conservatives say they forced the government to scrap a 10% increase in tax on cider, plans for a 50p duty on land lines to fund broadband expansion and plans to end tax relief on holiday homes. | The Conservatives say they forced the government to scrap a 10% increase in tax on cider, plans for a 50p duty on land lines to fund broadband expansion and plans to end tax relief on holiday homes. |
| The Lib Dems say it was their pressure that led the government to shelve the plans for cider and holiday homes. | The Lib Dems say it was their pressure that led the government to shelve the plans for cider and holiday homes. |
| 'We won't turn recession into depression' | 'We won't turn recession into depression' |
| The tax on cider, which came into force on 29 March, will be reversed on 30 June unless Labour wins the general election. | The tax on cider, which came into force on 29 March, will be reversed on 30 June unless Labour wins the general election. |
| Labour said none of the policies had changed and the government had agreed there would have to be further legislation for the cider tax relief and the other measures would be included in a second finance bill. | Labour said none of the policies had changed and the government had agreed there would have to be further legislation for the cider tax relief and the other measures would be included in a second finance bill. |
| Treasury minister Stephen Timms accused the Tories of being "fiscally irresponsible" by "playing the populist cards". | Treasury minister Stephen Timms accused the Tories of being "fiscally irresponsible" by "playing the populist cards". |
| But, for the Conservatives, William Hague said the plan for tax on cider was not the way to tackle alcohol misuse - instead super-strength drinks should be taxed more. | But, for the Conservatives, William Hague said the plan for tax on cider was not the way to tackle alcohol misuse - instead super-strength drinks should be taxed more. |
| "Hitting the moderate drinker is the wrong way to go about it," he told GMTV. | "Hitting the moderate drinker is the wrong way to go about it," he told GMTV. |
| 'Vital' year | 'Vital' year |
| Lib Dem leader Nick Clegg attacked the "stitch up" between the two biggest parties which saw "the most mouse-like" attempts at reform - including a commitment to hold a referendum on changing the first-past-the-post voting system - shelved. | Lib Dem leader Nick Clegg attacked the "stitch up" between the two biggest parties which saw "the most mouse-like" attempts at reform - including a commitment to hold a referendum on changing the first-past-the-post voting system - shelved. |
| But Mr Brown is expected to outline later new plans to hold two referendums - one on changing the voting system and one on reforming the House of Lords, within 18 months of a Labour win. | But Mr Brown is expected to outline later new plans to hold two referendums - one on changing the voting system and one on reforming the House of Lords, within 18 months of a Labour win. |
| Meanwhile parties have stepped up attacks on each other - Business Secretary Lord Mandelson attacked Conservative policies as "limp" and "pathetic" while Lib Dem leader Mr Clegg said both the "old parties" were part of a "corrupt politics". | Meanwhile parties have stepped up attacks on each other - Business Secretary Lord Mandelson attacked Conservative policies as "limp" and "pathetic" while Lib Dem leader Mr Clegg said both the "old parties" were part of a "corrupt politics". |
| In an interview with GMTV, Mr Brown said this year was "vital for the recovery". | In an interview with GMTV, Mr Brown said this year was "vital for the recovery". |
| Labour's tax on jobs will kill the recovery and we've got to get that message across William Hague Election-at-a-glance: 7 April LIVE: Text and video coverage What is this Parliament's legacy? Cider tax rise faces dropped | Labour's tax on jobs will kill the recovery and we've got to get that message across William Hague Election-at-a-glance: 7 April LIVE: Text and video coverage What is this Parliament's legacy? Cider tax rise faces dropped |
| Asked about his plans to raise National Insurance - which the Tories oppose - Mr Brown said it was necessary to protect public services and said business leaders who backed Tory plans had been "deceived". | Asked about his plans to raise National Insurance - which the Tories oppose - Mr Brown said it was necessary to protect public services and said business leaders who backed Tory plans had been "deceived". |
| Ocado founder Tim Steiner, Asos chief executive Nick Robertson, Monsoon's Peter Simon and Yell chairman Bob Wigley are the latest to publicly back the Tories' pledge to scrap the bulk of the NI rise. | Ocado founder Tim Steiner, Asos chief executive Nick Robertson, Monsoon's Peter Simon and Yell chairman Bob Wigley are the latest to publicly back the Tories' pledge to scrap the bulk of the NI rise. |
| Mr Brown said: "I think they have been deceived because the big issue at the moment is can we sustain the recovery?. | Mr Brown said: "I think they have been deceived because the big issue at the moment is can we sustain the recovery?. |
| "Don't put that at risk. The Conservative policies are going to take £6bn out of the economy this year, in 2010." | "Don't put that at risk. The Conservative policies are going to take £6bn out of the economy this year, in 2010." |
| VAT rise | VAT rise |
| Asked if he had ruled out a rise in VAT, Mr Brown told GMTV: "We looked at it and we decided on National Insurance, we thought that was a better and fairer tax." He said a VAT rise was "not our plan". | Asked if he had ruled out a rise in VAT, Mr Brown told GMTV: "We looked at it and we decided on National Insurance, we thought that was a better and fairer tax." He said a VAT rise was "not our plan". |
| But for the Conservatives, William Hague told GMTV there was not much "faith" in Gordon Brown and Chancellor Alistair Darling around the country. | But for the Conservatives, William Hague told GMTV there was not much "faith" in Gordon Brown and Chancellor Alistair Darling around the country. |
| He criticised the planned National Insurance rise: "Labour's tax on jobs will kill the recovery and we've got to get that message across." | He criticised the planned National Insurance rise: "Labour's tax on jobs will kill the recovery and we've got to get that message across." |
| Clegg critical of reform promises | Clegg critical of reform promises |
| Later Conservative leader Mr Cameron will outline plans to make MPs more accountable, give voters the power to remove misbehaving MPs before elections and restrict lobbying. | Later Conservative leader Mr Cameron will outline plans to make MPs more accountable, give voters the power to remove misbehaving MPs before elections and restrict lobbying. |
| The Conservatives have called for a reduction in the number of MPs and ministers as part of plans to renew public trust in Parliament. | The Conservatives have called for a reduction in the number of MPs and ministers as part of plans to renew public trust in Parliament. |
| But Mr Clegg says only the Lib Dems, not the two "old parties", can be trusted with renewing the political system saying they had blocked "serious reform every step of the way". | But Mr Clegg says only the Lib Dems, not the two "old parties", can be trusted with renewing the political system saying they had blocked "serious reform every step of the way". |
| He also backs a right of "recall" for MPs who have been officially reprimanded over their behaviour. They would have to face a by-election if a petition managed to attract the votes of 5% of their constituency. | He also backs a right of "recall" for MPs who have been officially reprimanded over their behaviour. They would have to face a by-election if a petition managed to attract the votes of 5% of their constituency. |
| He pointed out that he first proposed MPs should stop being able to buy second homes, subsidised by the taxpayer, after the expenses scandal. | He pointed out that he first proposed MPs should stop being able to buy second homes, subsidised by the taxpayer, after the expenses scandal. |
| And he said while his party was not "without blemish", none of his MPs had abused expenses on the "industrial scale" the other parties had. | And he said while his party was not "without blemish", none of his MPs had abused expenses on the "industrial scale" the other parties had. |
| "They let the flippers and those who avoided capital gains tax off scot free," he said. | "They let the flippers and those who avoided capital gains tax off scot free," he said. |
| He said both Labour and the Conservatives had "systematically blocked" plans for political reform. | He said both Labour and the Conservatives had "systematically blocked" plans for political reform. |
| "For Gordon Brown change is what you talk about when you want everything to stay the same, for David Cameron change stops on May 7, they are treating people like fools - you can't trust a word they say. | "For Gordon Brown change is what you talk about when you want everything to stay the same, for David Cameron change stops on May 7, they are treating people like fools - you can't trust a word they say. |
| "A vote for the Labour or the Conservative parties is a vote for corrupt politics." | "A vote for the Labour or the Conservative parties is a vote for corrupt politics." |
| After PMQs, Mr Cameron is expected to campaign in the North West of England and Wales while Mr Clegg is also expected to visit the North West. | After PMQs, Mr Cameron is expected to campaign in the North West of England and Wales while Mr Clegg is also expected to visit the North West. |