Brown Promises to Cut Fuel VAT Next Winter

"I can be specific that this will be done in time for a reduction in people's fuel bills for this winter," Mr Brown said.

Labour called a news conference this afternoon following claims by the Tories that, in a speech on Tuesday night, Tony Blair had diluted his party's commitment to cut VAT on fuel from 8% to 5%.

Mr Brown said: "We are grateful to the Conservatives for drawing attention over the last 24 hours to the choice facing the electorate on VAT. The choice ... is between lower VAT with Labour and more VAT under the Tories.

"Labour's commitments on VAT are clear. We will cut VAT on fuel to 5% in our first budget. And, after contacts over recent months with the gas and electricity companies, as well as the Treasury and Customs and Excise, we will ensure that VAT is reduced on people's fuel bills for this winter."

Mr Brown promised Labour would not extend VAT to food, children's clothes, books, newspapers or fares on public transport - and challenged the Conservatives to do the same.

"If the Conservatives win again, nothing will stop them increasing VAT on fuel to 17.5% and extending VAT further," he said.

Mr Brown claimed that, in Tory Central Office briefings, candidates were being specifically advised not to rule out extending VAT.

The Conservatives' allegations about Tony Blair reneging on the commitment to cut VAT had followed remarks he made in an off-the-cuff speech in Stevenage, where he said, "if we've got room for a tax cut, let the tax cut be VAT on fuel that helps the pensioners of this country".

A Labour spokesman explained Mr Blair's remarks were simply a "figure of speech". But the Chief Secretary to the Treasury, William Waldegrave said: "All Tony Blair's promises to pensioners are about to be broken."