Michael Howard is planning to slash the burden of inheritance tax on hundreds of thousands of families, it has been reported.

The Telegraph and Mail on Friday suggested the party is planning to lift the tax threshold as high as £1 million.

The plan is being billed as part of a "radical tax cutting strategy".

It could be coupled with moves to cut stamp duty on house purchases and indirect taxes such as fuel duty.

The party hopes the move will appeal to middle class voters who backed Labour in 1997 and 2001.

Shadow chancellor Oliver Letwin said the existing inheritance tax system was "plain unfair".

"Once only the very rich paid it but under Gordon Brown it is hitting ordinary families all over Britain," he added.

"Even former council houses are being drawn into the net. This problem needs to be remedied."

However, the party is set to describe the plans as "targets" rather than concrete promises, allowing more room for manoeuvre on when and how they are implemented.

The tax cutting plans are reported to fall short of the demands of some Conservative MPs for a major tax cutting programme.

But the party is said to believe that its ideas will address specific grievances, helping to convince voters that the policies are credible.