Tony Blair last night appeared to expand Labour’s tax pledges as he ruled out increasing National Insurance contributions to fund the NHS.
Pressed on Channel Four News, Mr Blair said that that National Insurance would not have to rise to fund the NHS after 2008, when the current spending programme runs out. The presenter, Jon Snow, asked: "National Insurance will not go up?"
Mr Blair replied: "Correct".
The Prime Minister added: "I am not writing the budget, but you don't build the same hospital twice. The NI rise takes care of the catch-up that was needed for the health service and by 2008 for the first time this country will be back up to the European average and I think that will be to the great advantage of the country."
Mr Blair’s statement ended his party’s repeated refusal to go beyond its pledge not to increase the basic and top rate of tax despite predictions of an £11bn "black hole" in the party's spending plans. It will reignite the debate over tax as the parties scramble to maximise their vote during the last full day before voters go to the polls tomorrow.