Michael Howard has said the Conservatives will not cut taxes if it hampers the party's ability to fund reforms of Britain's public services.

Amid continuing debate over the future of Tory tax policy, the shadow chancellor indicated he would not succumb to pressure to announce sweeping plans to slash taxes.

He vowed that the party would continue to "believe in low taxes".

"We are the party of low taxes. All our instincts are for low taxes," he said.

But he warned party activists that public spending would need to remain high initially to pay for reforms of public services.

"Under the Conservatives, as Iain has always insisted, a fair deal on tax and improving the public services will go hand in hand," said Howard.

"Because reforming and improving the public services is the only way to break Labour's vicious circle of ever higher taxes and ever failing services.

"It is the key to everything we want to achieve. It has got to be done and we'll do it."

However, Howard also said the party would be committed to cutting taxes at some point.

"We will always be a lower tax government than Labour. And we do plan to cut taxes," he said.

"But unlike Labour, our plans will be carefully costed and unlike Labour's they will be clear for all to see."

Howard warned that the Conservatives should learn lessons from Labour's experience in government.

He said the party should only "make promises we can keep".

The shadow chancellor also said that despite higher taxes and spending, the failure to "deliver reform" and improve services had left the public "fed up".

"Without reform of our public services, the extra money Labour has spent just hasn't made the difference.

"That is the central failure of this government. They have spent the money, taxpayers' money, but they've not carried out the reform."