YOU'VE BUCKLED!HUNT'S WIN AS LABOUR BACK DOWN ON TAX RISES

Keir Starmer will struggle to plug £38.5 billion spending black hole

- Sam Lister

CHANCELLOR Jeremy Hunt has warned Labour cannot be trusted with the economy after it was bounced into a late night promise that it will NOT increase VAT.

Sir Keir Starmer's party has repeatedly refused to rule out a hike in the shopping tax since the general election was called.

But Tory warnings last night that the Labour leader was planning to fill the £38.5 billion black hole in his spending plans with a rise in the levy forced a hastily written pledge from the party.

Mr Hunt told the Daily Express: "Having spent all week refusing to rule out an increase in VAT to fill the £38 billion black hole in their spending promises, Labour have buckled today under pressure. It demonstrates that they don't have a plan for the economy.

"Labour does however have lots of additional spending which can only mean one thing higher taxes, worth £2,094 for the average family." It took Labour less than two hours to make the tax pledge after the Tories put it on the spot.

The Tories later also argued that Labour cannot claim to be the party of stability when it writes tax policy on the hoof.

Treasury costings show Labour is facing a gaping £38.5 billion black hole in its spending plans.

Sir Keir's party insists the chasm will be filled by economic growth, despite leading economists insisting that alone will not make the sums add up.