The Conservatives have been forced to correct a spokesman's claim that plans to find £35 billion of savings from government waste and bureaucracy was not party policy.

Mark Prisk, a Tory whip, said on BBC 2's Daily Politics Show that the report by City troubleshooter David James was not in the party's official policy programme.

Later, Oliver Letwin, the shadow chancellor, was forced to issue a retraction.

"Contrary to the answer given on the Politics Show, the James review is 100 per cent party policy," he said.

Alan Milburn, Labour's election coordinator, said Conservative economic policy was in chaos.

"As soon as the Tories are challenged on the consequences of their James review proposals, Tory tax and spending plans unravel," he said.