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Leaders clash over 'tax bombshell'

Updated on 26 November 2008

By Gary Gibbon

A VAT Tax bombshell that would hit every family in the country?

The Conservative leader David Cameron has accused the prime minister of planning future rises in VAT to pay for the tax cuts announced on Monday.

Mr Cameron based his claim on an early draft of a Treasury document mistakenly posted on the internet.

But Gordon Brown insisted ministers had rejected the idea of a permanent future rise in VAT to 18.5 per cent, deciding to raise money through direct taxes instead.

He called Mr Cameron the 'do nothing leader of a do nothing party'.

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