The Tories and Lib Dems have accused the chancllor of unfair taxation and neglecting pensioners.

The attack came after Gordon Brown's speech to Labour's annual conference in Blackpool.

Shadow chancellor, Oliver Letwin said: "Mr Brown’s speech contained fine talk but it offered no action for the pensioners who are paying one third of their disposable income in council tax.

"It offered no action for the first time buyer who is paying £1,000 in stamp duty on a £60,000 house.

"And it offered no action for the owner of an ex-council house whose family now faces 40 per cent inheritance tax.

"In short, there was no action for millions of taxpayers who are paying the equivalent of 16.5 pence more in income tax in the form of 66 stealth tax increases and who are not getting value for money.

"We have to thin down fat government and give the taxpayers value for money. Fine speeches are no use when the economy is being suffocated by extra taxes, 15 new working regulations a day and which has dropped from fourth to fifteenth in the world competitiveness league."

Inequality

Liberal Democrat spokesman, Vince Cable, accused Brown of failing to tackle problems of inequality, poverty and growing personal debt.

Cable said: "It is undoubted that Gordon Brown has a good record in macro-economic stability, low inflation and falling unemployment but these achievements stem from decisions made early in his first term and now other problems are becoming apparent.

"Seven years ago when Labour came to power they spoke of introducing a fairer system in which inequality would be reduced.

"But inequality is even higher under the Labour government than ever under Margaret Thatcher.

"Despite the myriad of anti-poverty policies latest government figures show that one in five pensioners still live in poverty.

"A major contributory factor is the extreme complexity of means tested benefits. This stops many from claiming. For those that do claim there is no incentive to save.

"Under Labour, 6.7 million people of working age are living below the poverty line - an increase of 200,000 in the last year alone.

"The brutal fact is that the poorest 20 per cent still pay more of their income in tax than the richest 20 per cent.

"The failure of the Labour government to tackle the regressive council tax has hit the poorest the hardest.

"Labour has failed to get a grip on inequality and poverty," he added.