Osborne urged to cut income tax in Budget

Shadow chancellor Ed Balls said he could cut income tax by 3p, raise the income tax threshold to over £10,000 or increase tax credits for working people.

He said it would be “fairer and quicker” to cut VAT – as Labour has previously urged – but added that the Chancellor would be unwilling to admit his “mistake” in raising the sales tax to 20 per cent.

Tory deputy chairman Michael Fallon said: “Ed Balls has clearly learnt nothing from his time as Gordon Brown’s right-man. He wants billions of pounds of more borrowing and more debt, exactly how Labour got us into this mess in the first place.”