Pics: At last, a real Tory premier? Cameron inspires his party by backing British values and pledging tax cuts for millions of family

Tax cuts for millions of families were yesterday put at the heart of the Tory pitch to win next year’s election.

David Cameron electrified his party conference with a dramatic pledge to raise the 40p income tax threshold by more than £8,000 to £50,000 by 2020.

This would lift 800,000 out of the higher band altogether, reversing years in which it has sucked in more and more ordinary households. Those earning between £50,000 and £100,000 would pay £1,313 a year less in tax than they do now.

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Promises: David Cameron electrified his party conference with a dramatic pledge to raise the 40p income tax threshold by more than £8,000 to £50,000 by 2020 Read more about it.

Admitting action on the 40p rate was overdue, the Prime Minister also promised another huge increase in the personal allowance, helping 24million basic rate taxpayers.

 

He said the amount on which no tax is paid, currently £10,000, would be increased bit by bit if the Tories stay in office, reaching £12,500 by April 2020. That would save every basic rate taxpayer £500 a year.

In a direct appeal to the 30million families who would benefit from the £7.2billion tax commitment, Mr Cameron declared: ‘I want you to take home more of your own money.’

'We are one people in one union' - David Cameron

Pledge: Admitting action on the 40p rate was overdue, the Prime Minister also promised another huge increase in the personal allowance, helping 24million basic rate taxpayers

Appeal: In a direct appeal to the 30million families who would benefit from the £7.2billion tax commitment, Mr Cameron declared: 'I want you to take home more of your own money'

Increase: Mr Cameron said the amount on which no tax is paid, currently £10,000, would be increased bit by bit if the Tories stay in office, reaching £12,500 by April 2020

Iain Duncan Smith, work and pensions secretary and a standard bearer for the Tory right, was seen punching the air in delight as Mr Cameron laid out his plans. Ridiculing Ed Miliband’s failure to mention the budget deficit at the Labour party conference last week, the Prime Minister insisted tax cuts could be delivered only if tough measures were used to bring down public spending.

He denounced Labour as ‘this high-spending, high-taxing, deficit-ballooning shower’ and said it would be madness to expect a vote for them in May to end in anything but economic disaster.

The tax pledges were the centrepiece of Mr Cameron’s final conference speech before the election – and what could be his last in charge if he loses to Mr Miliband.

Applause: Senior Tories including George Osborne, William Hague, Theresa May and Philip Hammond applaud the Premier's speech, while Iain Duncan Smith was seen punching the air in delight

Highlight: The tax pledges were the centrepiece of Mr Cameron’s final conference speech before the election

He cast the election as a choice between him and the Labour leader – telling voters flirting with Ukip: ‘If you vote Ukip, that’s really a vote for Labour. On May 7 you could go to bed with Nigel Farage and wake up with Ed Miliband. Neither does it for me.’

Setting out parts of the Conservative election manifesto, Mr Cameron:

• Moved wife Samantha to tears with a commitment to raise spending on the NHS, which cared for their late son Ivan;
• Vowed to rein in the European Court of Human Rights by replacing Labour’s Human Rights Act with a bill of rights;
• Pledged to undercut the business tax rates of leading countries until 2020;
• Said Scottish MPs would be barred from voting on English laws once more powers are handed to Edinburgh;
• Put reform of migration rules at the heart of his plan to renegotiate Britain’s membership of the EU;
• Marched on to Labour territory by promising action on zero-hours contracts and youth unemployment;
• Promised a Tory government would ensure 20 per cent discounts for young first time buyers of 100,000 new homes.

SamCam close to tears by Cameron's speech on NHS

Moved:  Mr Cameron moved his wife Samantha to tears with a commitment to raise spending on the NHS, which cared for their late son Ivan

Strength: In his 52-minute speech, Mr Cameron also said strong families, reward for hard work and a deep patriotism informed his politics

Changes: Mr Cameron said Scottish MPs would be barred from voting on English laws once more powers are handed to Edinburgh in the aftermath of the independence referendum

But it was the two tax-cutting pledges, which will cost £7.2billion, that were the most significant and audacious. In his 52-minute speech, Mr Cameron also said strong families, reward for hard work and a deep patriotism informed his politics.

And he set out what he believed most families aspired to: ‘A good job, a nice home, more money at the end of the month, a decent education for your children, a safe and secure retirement.’

Labour accused the Conservatives of standing up for the privileged few and insisted the party must spell out where the £7.2billion would come from.

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Support: Mr Cameron is embraced by his proud wife Samantha as he comes to the end of his speech

United front: Mr Cameron posed for photographs with his wife after his leader's speech went down a storm with the Conservative party faithful

Thumbs up: Mr Cameron appeared to be pleased with how his speech went when he gave this thumbs up gesture to the cheering crowds

Shadow Chancellor Ed Balls said: ‘David Cameron’s speech showed no recognition that working people are £1,600 a year worse off under the Tories nor that the NHS is going backward on their watch.

‘Nobody will be fooled by pie in the sky promises of tax cuts in six years’ time when David Cameron cannot tell us where the money is coming from.’

Paul Johnson, of the Institute for Fiscal Studies, also raised doubts about tax cuts when most Whitehall departments are to lose a third of their budgets.

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