UK chancellor George Osborne has stated there will be no need to raise taxes after 2015.
He explained the government would instead look to cut the budget deficit through spending cuts.
But Mr Osborne suggested Labour would seek to increase taxes if it was in power after the next general election, which is due to take place in 2015.
Speaking in front of the Treasury Committee, he said: "I'm not sure whether they would do big tax increases. I suspect they would, but that is for them to explain."
The chancellor also pointed out that the coalition government's original plans to cut the deficit with spending cuts of 80 per cent coupled with 20 per cent tax rises were only ever "a guide".
During the first quarter of the year, the UK economy grew by 0.3 per cent. However, analysts have claimed this figure could be set to rise for the second quarter because of improvements with sectors including the services and construction industries.
Mr Osborne recently announced plans to shares in Lloyds and the Royal Bank of Scotland to raise funds to cut the deficit.
Find up to date information on the FTSE 100 and spread betting strategies at City Index