William Hague has today committed a future Conservative government to a rolling programme of tax cuts.

In an interview with the FT, the Tory leader promised to reduce the size of the state and said he would deliver a sharp reduction in taxes such as capital gains. Hague has likened his programme to the $1350 billion of tax cuts put forward by Republican president George W Bush.

He also said that the election represented the "last chance" to save the pound, arguing that the prime minister is now "determined" to join the euro in the next parliament.

Despite dire opinion polls predictions, Hague said he remained confident of victory at the coming general election, saying he had defied the pundits in the past and expected to do so again.