Michael Howard is to set out plans to slash stamp duty for homebuyers by £1bn - the final tax-cut in the Tory policy armoury.

Coming just weeks after Gordon Brown doubled the duty threshold from £60,000 to £120,000, the Conservatives say they will double it once more.

With the average house price standing at £163,000 according to the Halifax, the Tory move will exempt most first-time buyers from the tax.