Tory frontbenchers are said to be fighting a rearguard action following Oliver Letwin's pledge to curb spending in areas beyond health and education.

The FT reports that shadow defence secretary Nicholas Soames is most vociferously fighting his corner in order to avoid the axe falling on the defence budget.

Meanwhile the Independent reports that the Tories are considering plans to pay mothers an annual allowance to stay at home and look after their children.

The move is being seen as an attempt to outflank Labour on the issue of child care.