Portillo says Labour is the "high tax party"

Shadow chancellor Michael Portillo, criticised Gordon Brown's budget statement, recalling that Labour's election manifesto said the level of public spending was not the best measure of Government effectiveness, asked Mr Brown: "Were you being insincere then or are you kidding us all now? Either way, who can believe a word that you say now?"

Shadow chancellor Michael Portillo, criticised Gordon Brown's budget statement, recalling that Labour's election manifesto said the level of public spending was not the best measure of Government effectiveness, asked Mr Brown: "Were you being insincere then or are you kidding us all now? Either way, who can believe a word that you say now?"

He accused Mr Brown of going on a "spending splurge" and raising total public spending by 1.5% of national income, the equivalent of £600 a year on the average tax bill.

Mr Portillo, saying the country was paying for the Government's failure to reform welfare, alleged: "Now they are going to be big spenders but not wise spenders."

The shadow chancellor asked: "How can this Government spend so much and spend it so badly?"

He said: "The Labour Party fought four general elections on a policy of tax and spend and those are the four general elections it lost."

Mr Portillo denied it was "morally superior" to tax people in order to be able to spend generously and pledged: "A Conservative govenrment will cut taxes for those people."

He claimed the General Election dividing lines had been drawn. "We will fight the next election as the low tax party, Labour has been exposed as the high tax party." The shadow chancellor said: "Labour governments always end up with tax and spend. A Conservative government will tax less and spend better and show common sense and prudence."