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Labour attacks Cameron on 'unaffordable' tax cuts

Labour attacks Cameron on 'unaffordable' tax cuts



David Cameron was last night accused of making uncosted and unaffordable promises on tax cuts as Labour ratcheted up the pressure on the opening day of the Tory conference. The Conservative leader unveiled tax breaks for families and the young middle classes in the hope of winning back public support to dissuade Gordon Brown from calling an autumn general election.

Mr Cameron and his shadow cabinet colleagues kept up the public pretence that they cannot wait for the poll, with the Tory leader insisting: "We are ready for an early election ... I really want it."

In brief remarks to the conference hall, a defiant Mr Cameron cast the gloomy polls to one side: "This week we are going to mount the great Conservative fightback. It is going to be a fightback based on clear policies, based on a clear direction and based on the clear choice that we will give people at the next general election."

Today the shadow chancellor, George Osborne, will set out Tory tax plans in detail. He is expected to make an audacious raid into Labour's natural territory by promising a clampdown on so-called "non-doms" - non-domiciled workers who live in the UK but are not registered to pay tax - to finance a reduction in inheritance tax. The Tories say Mr Brown has been promising an assault on the tax benefits of the super-rich since 1994 but has failed to deliver. Yesterday the plans were derided by the chancellor, Alistair Darling, as "a mass of contradictions".

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Tories tried to lift party morale in Blackpool by wheeling out the big guns including Lord Heseltine, William Hague, Boris Johnson and, by satellite link, the Republican governor of California, Arnold Schwarzenegger. But party strategists privately admit they will be delighted if they regain enough ground in the polls to persuade Mr Brown that it is too big a risk to call an election.

Mr Brown's aides met to discuss the pros and cons over the weekend. No decision has been made but many want a November 1 poll, to be announced by the prime minister next week. Labour plans to take initiatives throughout the week on the health service, education, Northern Rock and Iraq, breaking the tradition of maintaining silence during an opposition conference. Today, as the Tories debate the economy, Mr Brown will make an address on financial stability, alongside the former chairman of the Federal Reserve, Alan Greenspan.

Labour's private polls broadly show a seven-point lead over the Tories but there is a tighter picture in Labour-held marginals, seen as evidence of the impact of money poured into crucial seats by Lord Ashcroft, the Tory millionaire.

The shadow local government secretary, Eric Pickles, said an early poll could lead to "one big mess" after warnings from the Association of Electoral Administrators that a November vote would disenfranchise more than a million people, as well as create postal vote chaos. Mr Pickles said a close result could lead to Florida-style legal challenges in the courts.

Asked what advice he might give to the prime minister about an early poll, John Turner, chief executive of the Association of Electoral Administrators, said: "Keep your hand away from the phone".

Under pressure to win back voters, Mr Cameron and his shadow chancellor clarified their tax plans by promising:

· to abolish stamp duty for first-time buyers up to £250,000, meaning nine out of 10 would pay no stamp duty

· to encourage cohabitation between couples with children by increasing working tax credit by, on average, £32 a week

· to provide unspecified tax breaks for married couples worth £2,000

· to offer cuts in inheritance tax.

In another voter-friendly measure, David Willetts, the shadow cabinet member who has led an inquiry into childhood, will unveil plans to give more legal protection to those organising sport and outdoor activities for children.

Courts would have to consider whether organisers had shown "reckless disregard" rather than "negligence". Mr Willetts said last night: "Today, fear of litigation means school trips and adventure holidays are abandoned. Instead, children get their excitement by retreating to their bedrooms to play video games, or the artificial stimulus of drinks and drugs."

Mr Cameron also promised to fund the tax breaks through green taxes, such as airline flight tax, or letting the private sector take charge of finding work for the long-term unemployed.

Mr Darling responded by saying: "The Tories have recklessly made billions of pounds of unfunded tax and spending promises, with no credible explanations of where the money would come from. It is a mass of contradictions. They used to say stability ahead of tax cuts. Now, in desperation, it is unfunded promises of tax cuts ahead of stability."

Mr Cameron insisted in a BBC interview yesterday: "Every tax reduction we're speaking about this week, like the change in stamp duty, will be fully paid for by tax changes elsewhere. We are not making any uncosted spending commitments or uncosted tax commitments."

He rejected suggestions that he was lurching to the right in an attempt to shore up his core vote, or combat Mr Brown's incursions into Tory territory last week.

But William Hague, the shadow foreign secretary, drew massive applause - after a 30-minute delay due to sound difficulties - by reclaiming Lady Thatcher from Mr Brown: "We, Gordon, backed her when she rescued the country in the face of every denunciation from the likes of you. So you may fawn now at the feet of our greatest prime minister, but you are no Margaret Thatcher. Gordon Brown is not a conviction politician, he is a calculation politician."

Guardian Unlimited © Guardian Newspapers Limited 2007

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