I will cut taxes, pledges Howard

Michael Howard today moved to shore up Tory support with his firmest pledge yet to cut taxes if his party wins the next election.

The Tory leader significantly strengthened his previous "aim" to cut taxes to a more concrete commitment of saying he "will" cut taxes. And he claimed he would put more money into taxpayers' pockets at the same time as letting public spending continue to increase.

"It is a question of using the money more effectively and reducing taxation," he said in a BBC Today interview.

"As the economy grows I can increase public spending - and public spending has been increasing every year since kingdom come - but at a lower rate that the country can afford.

"As the economy grows we can begin to cut taxation so people can keep more of their hardearned money. That's the way you get dynamic economies that create more jobs and better public services."

Mr Howard said he could pull off the economic trick because the Tories "will not waste the money Labour is wasting" and by gently slowing down the rate of spending growth.

"That will enable us in due course to lower taxes," he promised. Until now Mr Howard has made clear his ambition to cut taxes but has kept his options completely open, not even ruling out going into the next election campaign without any firm pledge to cut income tax.

But his cautious words will still dismay some Tory MPs who have been pushing for a bolder plan to slash spending and chop income tax much faster.

Mr Howard's move appeared to be a response to rattled Tory nerves over the looming results of the Euro-elections, to be announced on Sunday. A series of polls have claimed the Conservative share of the vote will be slashed from 33 per cent in 1999 to 22 per cent today after a surge in support for UKIP. He promised to be tougher in Europe, claiming he could wrestle back control over Britain's fishing and borders in negotiations with EU counterparts.

Challenged how he could achieve such a result without quitting the EU altogether, Mr Howard invoked Lady Thatcher's success in winning rebates for the British taxpayer.

" People said Margaret Thatcher could not win the rebate for Britain, that the others would never give up their money for Britain. But she did," he said.

"I want a new deal in Europe. I want a fresh look at the entire basis of the way the EU is run." He denied privately planning to threaten to pull out if he did not get his way in talks.