Labour said the move would worry older people and the Conservatives said it suggested the SNP would cut pensions.

BBC: Scotland politics

The Welsh government said the Conservatives had not explained how they would pay for the tax cut.

BBC: Andrew RT Davies

Mr Osborne said the Conservatives would set out further details of how they would cut Britain's deficit at a faster rate than Labour before the general election, adding that they would place more emphasis on spending cuts than tax rises.

BBC: Darling concedes cuts could be tougher than 1980s

He rounded on the Conservatives accusing them of wanting to cut public spending which he said would be "economic madness".

BBC: Turn to us in crisis, says Clegg

Shadow business secretary Ken Clarke said the Conservatives would be "a friend" to new businesses and pledged to cut down on their paperwork.

BBC: At-a-glance: Tory conference

The Conservatives have said not to do so would be irresponsible and would set back efforts to cut the multi-billion pound deficit.

BBC: Darling urges Labour caution over spending debate

The Conservatives say they would restore the link between state pension and earnings by replacing the New Deal - and so cut the need for means testing.

BBC: NEWS | UK | UK Election 2005 | Pension reform tests are unveiled