The tax record: how Labour has fared since 1997

Since coming to power in 1997, Labour's manifesto pledges concerning tax have by and large been kept but in recent years some claim the record is slipping.

Labour made tax a key pledge in its 1997 manifesto, promising that there would be no rise in income tax and that it would cut VAT on heating to 5 per cent. The manifesto also pledged a long-term move to a 10p in the pound starting rate of income tax and to cut high marginal rates of tax at the bottom end of the earnings scale. Labour was clear that it would introduce a windfall tax on privatised utilities.

Labour kept its promise not to increase the headline basic or top rate of tax and Gordon Brown also cut VAT on fuel to 5 per cent in 1997. VAT was also not levied on food, children's clothes, books and newspapers and public transport fares.

Additionally in 1999 Mr Brown introduced a new 10p rate of tax and cut the basic rate of tax from 23 to 22 per cent in 2000. The Institute of Fiscal Studies found that Labour's first two Budgets imposed net tax rises, but the subsequent Budgets included net tax cuts. However, the total tax burden increased because of indirect taxes.

In 2001, Labour's manifesto again promised not to raise the basic or top rate of tax and to extend the 10p lower income tax band. It also promised not to extend VAT.

Subsequently Labour has not increased the headline or top rate of tax. The Chancellor has extended the 10 per cent starter rate of income tax in 2001 and he also fulfilled his pledge not to increase the scope of VAT.

However, in 2002, Mr Brown imposed a 1 per cent increase in National Insurance contributions to fund the NHS.

Mr Brown has also been accused by Tories of a series of 66 "stealth" tax rises. The IFS Green Budget, published in January, said Mr Brown had increased the tax burden and was expected to be taking 2.1 per cent more of national income in tax next year than under the Tories in 1997.