London: UK Business Secretary Peter Mandelson said opposition Conservative Party plans to partially reverse an increase in payroll tax would lead to it being forced to raise Value Added Tax, a levy on sales, to 20 per cent from 17.5 per cent.
Asked if his Labour Party ruled out an increase in VAT, Mandelson said "our plans add up without a VAT rise".
"We have made our plans, we have set out what tax increase we are going to make," Mandelson told Sky News on Saturday. "We have plumped for an increase in national insurance charges which some business leaders don't like."
Mandelson said he expects "more humility" from banks. Asked about the remuneration of Robert Diamond, president of Barclays, Mandelson said: "I don't mind people being rewarded for success. What is Mr Diamond doing? He is making deals, not building business... Don't go on provoking the public in this way," Mandelson urged the banks.
