A third-term Labour administration would not increase the basic or top rate of income tax, Gordon Brown has said.

However, the newly published manifesto makes no mention of the party's plans for national insurance.

The Conservatives on Wednesday accused the chancellor of planning a three per cent rise in national insurance to pay for their extra spending commitments.

However, the chancellor argued that his plans are fully costed and accounted for without need for further tax rises.

"All our promises are set out and fully costed," said Brown.

He also sought to maintain Labour's business-friendly approach to taxation.

"Britain will maintain a competitive tax environment for businesses large and small," he pledged.

The manifesto also includes pledges not to extend VAT to food, children's clothes, books, newspapers and public transport fares.

It also says that a re-elected Labour government would seek to implement "targeted tax cuts for families and to support work".

Manifesto pledge

The Labour manifesto contains a short section on tax commitments for the next parliament.

"We will not raise the basic or top rates of income tax in the next parliament," it says.

"We renew our pledge not to extend VAT to food, children's clothes, books, newspapers and public transport fares.

"We will continue to make targeted tax cuts for families and to support work.

"As a result of personal tax and benefit measures introduced since 1997, by October 2005 families with children will be on average £1,400 a year better off in real terms.

"Living standards in Britain have been rising, on average, by 2.5 per cent per year since 1997 – a total increase of nearly 20 per cent.

"We want a tax regime that supports British business.

"That is why we have cut corporation tax to its lowest ever level, introduced the best regime of capital gains tax in any industrialised country, and introduced a new research and development tax credit."