Osborne refuses to offer tax cuts

Shadow Chancellor George Osborne today refused to promise tax cuts at the next General Election as pressure grew on key areas of David Cameron's reform agenda from Tory activists.

He said the public needed to know that the Tories would put the stability of the economy and issues such as mortgage rates first before tax cuts.

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"I do not know whether when we become the Government there will be a recession or an economic boom," he told Sky News.

"For me to say at this point we are going to definitely promise tax cuts in 2009 would be totally irresponsible."

He said the Tories were in favour of lower taxes and believed people were over-taxed.

But given what was known about the poor state of public finances it was "unlikely" that the Tories would be able to offer tax cuts at at the next election.

His remarks come as pressure was growing on Tory leader David Cameron's reform agenda amid growing evidence of dissent among the Tory grass-roots.

Despite repeated attempts to quell complaints, two senior Tory figures are set to use fringe events at the conference to urge the leader to change his mind and pledge tax cuts.

John Redwood - head of Mr Cameron's economic competitiveness policy group - will launch a pamphlet entitled "The Case for Lower Taxation" on behalf of the Thatcherite Selsdon Group in Bournemouth later.

Totemic right-winger Lord Tebbit is also due to call on Mr Cameron to commit to lowering taxes at a separate fringe event.

Mr Redwood told BBC Radio 4'S Today programme it was a "nonsense" and "sloppy journalism" to suggest there was a row brewing over calls for tax cuts, adding that he was "very pleased" that Mr Cameron had not drawn up detailed tax plans.

"I have made it crystal clear that the NTB Group pamphlet which I will be launching today starts from the two propositions that the leader has advanced.

"We entirely agree with him, firstly that you shouldn't take risks with economic stability, and secondly, that the way to deliver lower taxes is by sharing the proceeds of growth."