The Conservative Party has vowed to match the Budget "sweeteners" announced by Gordon Brown last week and make additional tax cuts of £4 billion in its first year.

Speaking as he published the economic chapter of the Conservative election manifesto, Michael Howard said a Tory government would implement a Value for Money Action Plan to curb public spending.

"Britain cannot continue to spend more than it is earning without higher taxes or higher interest rates or both - which will harm our economic prospects," he said.

The manifesto committed the Conservatives to accepting two of Labour's key economic reforms: the national minimum wage and an independent Bank of England.