In a speech to the Centre for Policy Studies, Mr Portillo said he believed it would be best to give extra help to families with the youngest children. When children are not yet at school, they make the greatest demands in terms of expense, time and nervous energy. The children's tax credit, launched amid great fanfare by the chancellor last month, is designed to top up the pay of less well off parents. Mr Portillo indicated that he would open up the tax credit to the better off. The announcement by the shadow chancellor was the latest in a series of tax concessions unveiled by the Tories in the past few weeks.
Central office hopes to appeal to floating voters by targeting tax cuts at middle income earners.
In his speech yesterday, Mr Portillo insisted that there was a moral case for low taxation. We will remind the country that it was through the pursuit of low-tax policies that the British economy was transformed from the sick man of Europe to a picture of health. Labour last night claimed Mr Portillo's announcement was another Tory u-turn. A month ago, David Willetts described the children's tax credit as a 'gimmick'. Today their policy is in chaos and confusion.