Mr William Hague was forced on the defensive over tax and spending yesterday after reports that the Conservatives were considering up to £20 billion in annual tax cuts by the end of the next parliament.
Labour and the Liberal Democrats immediately questioned the Conservatives' economic credibility. Labour claimed Mr Hague's reputation on tax and spending was "in tatters" following a report in yesterday's Financial Times that the Conservatives were planning more radical tax cuts than the £8 billion promised in their manifesto, while the Liberal Democrats said the tax plans were "a shambles".
As the Prime Minister, Mr Tony Blair, admitted the tax burden under Labour had increased, the Chancellor, Mr Gordon Brown, launched a bitter attack on Mr Hague's economic strategy. On the election campaign in Swindon, Mr Brown, boosted by a declaration from 58 business leaders in a letter to the London Times that Labour was the party of "stable economic growth", said Mr Hague's tax and spending policies were "unravelling".
Mr Brown declared spending on essential public services would be cut back to fund Tory tax cuts: "The real Tory agenda is now clear: £20 billion of cuts in schools, hospitals and vital public services to pay for their reckless and uncosted tax promises. The truth is that the Tories would be both an economic disaster for Britain and now we know, a disaster for Britain's public services."
But as he launched the party's Welsh manifesto in Cardiff, Mr Hague distanced himself from the reports insisting the Tories had pledged to match Labour's spending plans for the first two years of the next parliament, but had not set a specific target for the overall tax burden.
Facing a barrage of tough questions, Mr Hague repeatedly declared: "Eight billion is the only figure we have given and the only figure we will be giving. It is the correct figure."
He challenged Labour to identify how it would fund its spending plans.
The Independent MP and former journalist, Mr Martin Bell, said yesterday he would stand as a candidate in the safe Tory seat of Brentwood and Ongar.
An opinion poll in London's Evening Standard showed Labour's lead over the Tories stands at 16 per cent. The average poll lead is still 17 per cent.
Mr Blair was under pressure last night to "rein in" Mr Peter Mandelson after prominent members of Labour's election team privately accused the former cabinet minister of undermining the party's campaign. Mr Mandelson said in a newspaper article that Labour was over-reliant on spin.