Howard: We'll cut civil service and tax

Michael Howard today opened the door to tax cuts under the Tories - and he said the money would be found by cutting thousands of civil servants and by sweeping reforms to public services.

The declaration from the incoming Conservative leader set the battleground for the next general election - and guarantees a massive Labour counterattack.

Mr Howard, writes in today's Daily Mail that there is now "a basic choice" for the country to make: "We can continue in a spiral of decline with taxes going ever upwards to pour ever more money into wrongly structured services or we can radically reform public services by making them accountable to their users rather than to bureaucrats."

That pressure, Mr Howard says, would make the public services more efficient and "get a bigger bang for the taxpayers' buck".

It would also allow a big reduction in the number of bureaucrats, increased by the Government by 27,000 last year alone. Labour is certain to pounce on the manifesto for change with charges that the Tories are lining up huge cuts in key services to bring taxes down.

But Mr Howard warns: "I am not going to make any rash tax promises at this stage." And he acknowledges: "The public are not interested in having lower taxes if that means poorer services."

Mr Howard avoids putting any figures on his tax pledges. In carefully chosen words he writes of his aim to "reduce the need for ever-increasing taxes". However, he leaves no doubt of his ultimate objective as he declares:" I genuinely believe that fundamentally reformed public services are the key to a permanently low-tax economy."

Mr Howard admits that the many attempts by successive governments to cut waste have failed. "Left to politiciansand bureaucrats, there will always be pressures to ratchet up the level of control once again."

But the lessons from France, Germany and elsewhere show that real change and real efficiencies in hospitals, schools and other key services can be gained by putting power in the hands of patients and parents, he says.

The last elements of opposition to the new leader appeared to be fading today as Mr Howard moved to cement his grip on the party.

Former Cabinet minister Michael Portillo gave his backing to the new leader, describing Mr Howard as "a figure of great authority and great credibility".

His words were coupled with a warning that the Conservative Party still numbered "too many people like me - white, middle-aged, from the South-East of England, middle-class" and that it needed more variety.

But his endorsement removed yet another potential obstacle in the path to a smooth coronation. One of the few jarring notes was struck by party chairman Theresa May, who stressed the anger among some of the rank and file over the fact that, if there was no contest, they would lose their right to have the final say in electing the leader.

Mr Howard moved to respond to that complaint by meeting Tory activists over the next two days to spell out his key policies including, today, aid for small businesses and for charities.

His team have already said that, if chosen unopposed by his fellow MPs, he would then seek confirmation of his election from the party rank and file.

Barring a last-moment upset, that election will take place at noon on Thursday, when nominations close with only one candidate for the top job.

The day after, according to aides, Mr Howard will shape his shadow cabinet. Mrs May herself is high on the predicted casualty list. But the main attention will focus on the balance the new leader gives to the modernisers and the party Right in his top team.