Howard admits party will raise tax take

The overall tax burden would increase under a Conservative government, Michael Howard said last night in remarks which will blunt his pledge to lower taxes.

In an interview with Jeremy Paxman on BBC 1, the Conservative leader gave a simple "yes yes" reply when asked whether the tax burden would go up if he wins the election.

"We'll bring about a growing economy. The tax burden goes up under a growing economy," Mr Howard told the BBC.

Mr Howard's admission will be regarded by economists as a statement of the obvious: the tax burden goes up if income tax rates are not cut during a period of growth.

But Mr Howard has so far tried to avoid making such a clear statement, as he tries to portray Labour as the party of high tax.

The Tory leader stood by his pledge to cut taxes by £4bn. "That's a guarantee," he said.

But Mr Howard made clear how far the Tories have moved on to Labour's territory when he admitted performing a U-turn on how much of the national income should go on public spending. Mr Howard used to believe that the figure should stand at 35% but he now believes government spending should account for 40% of national income.

"Yes I have changed my mind," he said. "I think it's important to learn lessons as life goes on and to look at things again."

His remarks are likely to be seized on by Gordon Brown who repeatedly said this week that the Tories' tax and spending plans "don't add up". The Conservatives want to cut taxes by £4bn and cut borrowing by £8bn - funded by cutting government waste by £13.5bn more than the £21.5bn earmarked by Labour.

Mr Howard hit back at the attacks this week, saying that Labour is bound to increase national insurance contributions (NICs) if it wins the election. But Mr Howard was unable to give a commitment that would leave NICs unchanged.

"There may be unforeseen events," he said.

Mr Howard also admitted that his flagship "Right to Choose" health policy would deprive the NHS of £1.2bn. The Conservatives would make the NHS pay half the costs of certain operations in the private sector at a cost of £1.2bn.

Asked whether this would leave the NHS poorer by £1.2bn, Mr Howard said: "Yes. Yes. I believe that if people have paid their taxes, have paid towards the cost of their NHS treatment ... it's right and fair for the NHS to pay a cost."

John Reid, the health secretary, said: "Michael Howard has confirmed tonight that the money he plans to give to people who already pay for private operations will come from the NHS budget."