Labour stepped up its attack on the Conservatives over tax and spending yesterday as the Liberal Democrats launched their manifesto promising to improve public services by raising taxes. After a bruising 48 hours for the Conservatives in which their programme of tax cuts for the next parliament had been widely criticised, the Shadow Chancellor, Mr Michael Portillo, declared a "victory" on tax and spending, but Labour insisted their sums simply didn't add up.
In a speech to business leaders in Leeds, the Prime Minister, Mr Blair, seemingly unconcerned by a poll in yesterday's London Independent which showed that 32 per cent of voters said their impression of him had "gone down" since the beginning of the election campaign, renewed Labour's attack on Tory economic policy. He declared that Conservative policy was in disarray over the question of whether it would cut taxes by £20 billion a year by the end of the next parliament.
"Neither Mr Hague nor Mr Portillo can explain what the policy is," Mr Blair said and he claimed that cuts in spending on public services, schools, hospitals and a higher national debt would inevitably follow to pay for the tax cuts.
The Conservatives had hoped to establish themselves as a taxcutting party during the election campaign. Instead, the party leader, Mr William Hague, and Mr Portillo were forced into a defensive position to explain how they would sustain spending on public services while funding the tax cuts.
Mr Portillo confirmed that a rolling programme of tax cuts, in addition to the £8 billion for the first two years of the next parliament outlined in the party's manifesto, was an "aspiration". But insisting his party's tax cuts were fully costed, he accused Labour of failing to tell voters they would have to pay an extra £10 billion in "stealth taxes" to fund its spending programme in government.
Launching the Conservative manifesto for the disabled, which included a pledge to review the benefits system for the disabled, Mr Hague was again on the defensive: "We have £8 billion of savings to finance £8 billion of tax cuts. I'm certainly not getting into any costing beyond the £8 billion."
Calculating that voters were prepared to pay more to improve public services, the Liberal Democrat leader, Mr Charles Kennedy, launched his party's manifesto in London with a pledge to put a penny on the basic rate of income tax and introduce a new 50 per cent top rate of tax on earnings over £100,000. He promised a "radical" political agenda. Increased taxes would raise nearly £8 billion to pay for the recruitment of 27,500 more nurses, smaller class sizes and big increases in the state pension.
"We know these are the big priorities for the overwhelming majority of people in our country today. Our policies can make a real difference. This manifesto offers Britain a real chance for real change," Mr Kennedy said.
The Tories were last night at the centre of a row over "negative campaigning" after their first party political broadcast.
The bleak, documentary-style film said dangerous criminals released early from prison under Labour have raped twice. TV viewers were shown actors playing those criminals smile as they were let out of jail to continue their break-ins, muggings and drug deals.
Home Office minister, Mr Paul Boateng, last night condemned the broadcast as "desperate, dire and a damning indictment of the way the Conservatives intend to run this campaign".
However, even within Tory ranks there were signs of unease with former party vice-chairman, Mr Michael Dobbs, saying he found it "disturbing".