Michael Howard has taken forward the battle on Labour's spending plans with a promise of a more transparent policy about levels of taxation.

The Conservative leader announced he would make Tax Freedom Day - the day each year when people proportionately start earning their take home pay - a public holiday if the Conservatives are returned to government.

The date is calculated by the right-wing Adam Smith Institute and is based on the total tax revenue the government takes.

In his first party political broadcast, the Tory leader said that people do not realise just how much tax they are paying because of Labour spin.

Hailing "Tax Freedom Day", Howard warned that it will take until June 9 next year before workers reap the fruits of their own labour.

"Tax Freedom Day is quite simply the day you stop working for the taxman and start working for yourself," he said in the broadcast.

"Labour has spent billions of pounds of your money on the public services.

"But they have failed to put in place any real reform. It has been a cycle of tax and spend and fail."

He committed the Conservatives to an open and more transparent policy on tax.

"The next Conservative government will make Tax Freedom Day a bank holiday, to help you decide whether you get genuine value-for-money, in return for the tax you pay," Howard added.

"That's part of our commitment to be straight and honest with people. That's part of our commitment to a new style of government."

But he played down the scope for significant tax cuts if the Conservatives return to office.

"Britain is a great country. We are the world's fourth largest economy. And we deserve great public services. Great public services don't come cheap," he said.

"We all accept that taxes are necessary to pay for the public services we need.

"The problem - in recent years - has been that taxes have gone up a lot, but do you really think you have seen the improvements you were promised?"