BBC News Online: UK Politics

Hague's £8bn tax giveaway

He said the tax cuts could be achieved by a series of reforms across government such as cutting waste in Whitehall to the tune of £1.8bn and attacking social security fraud.

He told the Cardiff Business Club: "I believe Britain can be the best and I believe in a Britain that can lead the world.

"That is why the next Conservative government will be a tax-cutting government."

Risk of Labour mockery

Previous Tory claims that they can cut taxes while matching key government spending commitments have been roundly mocked by Labour.

Mr Hague's speech will be seen as a bid to firm up earlier announcements of proposed Tory tax cuts.

As well as the saving on Whitehall running costs, and a £1bn saving on social security, Mr Hague said his plans included reform of government programmes such as the New Deal.

And he attacked Labour assertions that a Tory administration would result in £16bn of cuts as "malicious scaremongering".

"We won't take a penny from the investment planned for our vital public services," he said.

We will match Labour's increases for the NHS and for our schools.

Mr Hague insisted that his party would spell out the details of the tax cut proposals over the coming weeks.

Married couples, working mothers, pensioners and savers would be among those to benefit, he said.

But Chief Secretary to the Treasury Andrew Smith said Mr Hague's plans did not add up.

Bogus savings?

He said that "reannouncing bogus savings" was no substitute for economic policy.

Mr Smith argued that announcing tax cuts was not valid without detailed explanation of any spending cuts.

The £8bn tax cuts could only be achieved by cutting deep into "vital public services like schools, hospitals, transport and the police", he said.

"Everyone knows that the real Tory plan is privatisation in health, pensions and education, and billions of pounds of cuts the nation cannot afford."

Mr Hague's speech to the Cardiff business club comes ahead of a Cabinet meeting that, it is believed, will focus on the outline of Labour's election manifesto for what many believe will be a May poll.