Yvette Cooper MP, Labour's Chief Secretary to the Treasury, responding to David Cameron's speech this morning, said: "David Cameron's salesmanship cannot hide the lack of substance.

"Yet again David Cameron's rhetoric fails to stand up to scrutiny. He may urge spending discipline today, but that hasn't stopped him and his Shadow Cabinet colleagues from making numerous spending commitments with no explanation as to where the money is coming from.

"David Cameron says the Conservatives won't make 'naive over-estimations of potential savings' in public spending but fails to tell people that his tax promises rely on just such incredible savings estimates."

"Labour is already building on the Gershon Review by making efficiency a core part of Government. On top of our 3 year plans which save £30bn across the board, last week we announced specific areas where we will be getting better bang for the taxpayers' buck."

The Tories have pledged to spend more money, including on the NHS, a National School Leaver Programme, the army and light rail schemes, without ever saying how they would be paid for.