Voters see tax rising after election

Voters believe taxes will rise whoever wins tomorrow's election, but more see a tax hike if Labour wins a third term as polls predict, building society Nationwide said yesterday.

Just over half (51 per cent) of those asked in a survey said they expected to pay more tax under a new Labour administration, compared to 42 per cent after a Conservative victory and 44 per cent if the Liberal Democrats came to power.

Many economists say Chancellor Gordon Brown's economic plans rest on over optimistic revenue projections and he will need either to raise taxes or borrow more. Only three per cent of those asked by the monthly Nationwide Consumer Confidence Report thought taxes would fall under a re-elected Labour government, compared to 19 per cent under the Conservatives and 10 per cent under the Lib Dems.

The survey, which questioned 1,000 people between March 21 and April 18, also found voters putting more trust in Labour's handling of the economy.

Three-fifths (60 per cent) said a Labour victory would either improve or have no impact on the economy, compared to 49 per cent for the Conservatives and 50 per cent for the Lib Dems.