Howard's New Year message avoids tax-cut resolutions

MICHAEL Howard will today play down hopes among some leading Tory politicians that he will fight next year’s general election on a platform of sweeping tax cuts.

In his New Year message, the Conservative leader warns that political and economic realities will force him into "controversial" positions on some issues.

Where some front-benchers want Mr Howard to promise to cut taxes if he becomes prime minister, the Tory leader has so far resisted, fearful of being depicted by Labour as intent on slashing spending on key public services.

That caution yesterday limited Oliver Letwin, the shadow chancellor, to outlining only "options" for reducing inheritance tax, instead of actually promising cuts.

With economists warning that government borrowing will inevitably lead to either tax rises or spending cuts after the next election, Mr Howard is sticking to his softly-softly approach to tax.

"Of course, some of the things I have to say will be controversial," he will say in his message today.

"I do not believe in sweeping the truth - however painful it may be - under the carpet. I will outline the choices facing Britain at the election. How much tax do people want to pay?"