By Jonathan Davies

Prime Minister David Cameron has ruled out raising VAT, if the Conservatives win the general election.

In the final Prime Minister's Questions (PMQs) of this government, before it is disbanded on 31 March, Labour leader Ed Miliband asked Mr Cameron if he would rule out increasing VAT if his party won the general election. Mr Cameron replied "yes".

It follows a promise made by the Labour party yesterday (Tuesday). In a speech in Birmingham, shadow chancellor Ed Balls announced that a Labour government would not raise VAT, if elected.

The Labour party had speculated that the Conservatives would raise VAT in order to pay for some of the spending cuts outlined in the Budget.

The Prime Minister countered with his own question over Labour's plans for National Insurance Contributions (NIC). Mr Cameron asked if Ed Miliband would rule out raisin NICs if elected in the same way he'd ruled out putting VAT up. But the Labour leader dodged the question, saying Mr Cameron would have plenty of time to ask questions "after May 7th", suggesting he would be in opposition by then.