Labour's secret plan to increase VAT after the next election

George Osborne has accused Labour of "planning to deceive the British public" after official documents revealed Labour's secret plan to increase VAT permanently to 18.5% after the next election.

The Shadow Chancellor said the revelation undermined Gordon Brown's claims in the Times newspaper that he had no "hidden manifesto" and that "everything is above board".

George stressed, "This is Labour's secret tax bombshell. It explains why there is a black hole (of £10bn in 2011-12) in the PBR - because at the last minute Gordon Brown clearly decided to keep secret his plan to hit everyone with an extra tax rise to pay for his borrowing binge."

And he added, "Labour have a secret tax bombshell set to explode under the British people if they ever get re-elected. It tells you all you need to know about Gordon Brown and Labour."