Ed Miliband has backed plans to curb high salaries and said he would like to tax the middle classes.
The newly elected Labour leader is already a keen supporter of the current 50 per cent income tax rate for high-earners.
Mr Miliband has now said that the government “could do more on tax” in order to reduce the UK’s deficit, naming bankers and graduates as those who could be made to contribute more.
However, Deputy Tory chairman Michael Fallon has claimed that the Labour leader does not fully understand the issue of the deficit.
“He says he supports Alistair Darling’s plans but we know Alistair Darling wanted to increase VAT and he voted against VAT,” Mr Fallon said.
“When the really tough measures are put forward by the coalition Government, he votes against them and has made big spending pledges of his own – nearly £30 billion of them. There is a big black hole which he simply hasn’t yet filled out.”
Ed Balls also spoke out on Alistair Darling’s timescale for repaying the deficit, which he labelled “a mistake”.