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Tories 'committed to tax pledge' Tories 'committed to tax pledge'
(30 minutes later)
Shadow business secretary Ken Clarke insists the Conservatives are committed to abolishing inheritance tax on estates worth less than £1m. Senior Conservatives including Ken Clarke have insisted the party remains committed to abolishing inheritance tax on estates worth less than £1m.
He was trying to calm speculation that followed comments he made on Sunday to the BBC's Politics Show. It follows comments from Mr Clarke, shadow business secretary, on Sunday suggesting it was only an "aspiration".
He had said the state of the public finances meant raising the threshold for the tax was only an "aspiration". He later issued a statement insisting it would happen in the first term of a Tory government - a commitment stressed by other shadow cabinet members.
Business Secretary Lord Mandelson then said the Conservative tax plans had been "thrown into confusion". Labour claimed the Conservative tax plans had been "thrown into confusion".
After his initial comments to the BBC, Mr Clarke issued a statement saying the Tories were fully committed to raising the inheritance tax threshold in the first parliament of a Conservative government.
He said the measure would appear in the party's manifesto and that he supported it.
Key pointKey point
On Sunday, Mr Clarke told BBC One's Politics Show the priority was to stabilise public finances in a way which hopefully did not necessitate tax rises for most people. Shadow Commons leader Alan Duncan - the man Mr Clarke replaced as shadow business secretary - sought to clarify the position on Monday.
He told BBC Radio 4's Today: "We intend to make sure that only millionaires pay inheritance tax and if we are elected - as I hope we will be - it will be in our manifesto and we will reduce inheritance tax during that Parliament."
Philip Hammond, the shadow chief secretary to the Treasury, also said the commitment to reducing the tax remained.
Ken Clarke: "The highest priority is tackling debt"Ken Clarke: "The highest priority is tackling debt"
He told BBC Radio 5 Live: "It's very important that we restore some confidence in politics. And that means that when we make a commitment, we stick by that commitment.
"And we've made it very clear that this commitment will be in our manifesto and a Conservative government will implement it in its first term."
On Sunday lunchtime Mr Clarke told BBC One's Politics Show the priority was to stabilise public finances in a way which hopefully did not necessitate tax rises for most people.
He said raising current inheritance tax thresholds was an "aspiration" which the party retained and hoped to get around to "sooner or later".He said raising current inheritance tax thresholds was an "aspiration" which the party retained and hoped to get around to "sooner or later".
Lord Mandelson said in response: "Ken Clarke's comments have thrown [shadow chancellor] George Osborne's tax plans into confusion."Lord Mandelson said in response: "Ken Clarke's comments have thrown [shadow chancellor] George Osborne's tax plans into confusion."
The Tories' proposal in 2007 to cut inheritance tax was seen as a key point in reviving party fortunes.The Tories' proposal in 2007 to cut inheritance tax was seen as a key point in reviving party fortunes.
Conservative leader David Cameron and Mr Osborne have insisted they will stick to the plans, despite other difficult decisions on tax and spending.
BBC News political correspondent Carole Walker says the Tory pledge has been undermined by Mr Clarke's comments and that the party cannot afford indiscipline on its economic plans.