Plans to cut taxes may be hamstrung because of the poor state of the public finances.

Philip Hammond the shadow chief secretary to the Treasury said in an interview with the Daily Telegraph : 'I am an instinctive tax cutter and I think that's the important point. We will put stability first. But we are a party that by instinct wants to see the share of public spending reduced over time.'

David Cameron has gone as far as saying that his party would only make tax cuts when money was available, but Hammond is appearing to take a tougher stance.

'It depends very much on the state of the economy, on how much debt the government has piled up by the time we come into office and then we will have to make a judgment about how we can divide the proceeds of growth between tax reductions and reductions in borrowing over the economic cycle.'