LABOUR will today accuse the Tories of preparing a £1,440 VAT hike on ordinary households as tax is set to take centre-stage in the election campaign.

In a speech in Leeds, Ed Balls will attack the UK Government's choices on tax, saying that under the Tories "millions pay more while millionaires pay less."

The Yorkshire MP will warn that the Conservatives are intent on raising VAT again, representing a £1,440 tax rise on families over four years - despite David Cameron's categoric assurance that the Tories will do no such thing .

He will also claim the Tories are also planning another top-rate tax cut for the richest in society. Labour pointed out how George Osborne refused to rule out cutting the 45p income tax rate for top earners four times.

In response, Conservative HQ highlighted how Labour planned to raise taxes by £3,000 for every family and pointed out how Shadow Chief Secretary to the Treasury, Chris Leslie, when asked about how Labour would cut the deficit, referred to spending cuts as well as "fairer tax changes".

In his speech, the Shadow Chancellor will say Mr Osborne's plans for deeper spending cuts in the next three years together with £10 billion of unfunded commitments meant another Tory VAT rise was "inevitable".

Labour pointed out £10bn is the equivalent of a two per cent rise in VAT, noting how the Treasury's own figures showed this would result in a yearly tax rise of £360 for a couple with children; £1,440 over four years.

Mr Balls will also unveil the second of Labour's campaign posters as he highlights figures from the respected think-tank, the Institute for Fiscal Studies, showing families are on average £1,100 a year worse off because of the Coalition's tax and benefit decisions, including changes which come into effect today.

"David Cameron and George Osborne are going round the country telling people they've never had it so good. How out of touch can they get? The truth is millions are worse off because of this government's choices," Mr Balls will argue.

"Families and pensioners are paying more because of the VAT rise; David Cameron's first broken promise. And millions of working people have had their tax credits and childcare support cut to. It's the same old story with the Tories: give with one hand, take much more away with the other hand."

The Labour frontbencher will also refer to what he termed as the Conservatives' "secret plan"; another big tax cut for millionaires.

When asked if he was considering cutting the 45p top rate of income tax after the election, should the Tories win power, the Chancellor insisted this was not "one of our priorities".

The Chancellor made clear his party's "big tax commitments" for the next parliament were further raising the tax-free personal allowance and raising thresholds so only those earning £50,000 or more would pay the higher 40p rate.

Dismissing the notion of a cut to the 45p rate, Mr Osborne said: "Judge us by what we want to do and what we want to do is increase the tax-free personal allowance to £12,500, so people, full-time on the minimum wage, don't have to pay income tax and millions are better off."

But Labour, which has pledged to raise the higher income tax rate back to 50p rate on £150,000-plus salaries, urged Tory high command to "come clean".

It noted how those earning seven-figure sums had already benefited by at least £85,000 over the two years since the 50p rate was cut to 45p and pointed out how a further reduction to 40p would mean £1 million earners having another £340,000 shaved off their bill over the course of a Parliament.

Mr Leslie accused Mr Osborne of having been "flushed out", adding: "Their priority is always about helping the very richest in society".

But David Gauke, the Treasury Minister, hit back, saying: "Ed Balls and Ed Miliband must set out the details of their secret plan for £3028 of tax rises on every working family; the British people have a right to know what these tax hikes are."

He said already Mr Balls had been forced to admit Labour would drag one million more hardworking taxpayers into the 40p income tax rate.

"The reality is Labour also need a National Insurance rise to make their sums add up," he insisted, despite Mr Balls having categorically ruled out such a move.

Mr Gauke added: "Conservatives will freeze VAT, Income Tax and National Insurance. So the choice at this election is clear: lower taxes under David Cameron or higher taxes under Ed Miliband and the SNP."