Tory party proposals for £21 billion in tax cuts would benefit the rich and hurt the poor, an independent think-tank claimed today.

A high powered Conservative working group made the recommendation after a year-long re-examination of the party's tax policies - although David Cameron, the Tory leader, has already ruled out pledging tax cuts at the next election.

The proposals include a 2p cut in the basic rate of income tax, scrapping stamp duty on shares, rolling back business taxes and taking 2.5 million lower-paid workers out of income tax altogether.

The Tories' Tax Commission also recommends axing employee tax perks, incentives for research and development and the film industry and tax credits for higher earners to help pay for its plans.

George Osborne, the Shadow Chancellor, has said much of the tax revenue shortfall could be made up by creating new taxes based on environmental issues.

But today Labour claims that the package would favour the rich were today backed up by the Institute for Fiscal Studies, a highly regarded independent financial think-tank.

Robert Chote, director of the IFS, told BBC Radio 4's Today programme: "This package, if it were to be implemented in its entirety, is likely to benefit people on relatively high incomes rather than people on relatively low incomes.

"That would certainly be true of the income tax cuts, which help people in the middle or towards the top, and the same with cuts in inheritance tax and capital gains tax.

"It’s also worth bearing in mind that the Conservatives are likely to say that this will be paid for in part by increases in environmental taxes, and these do tend to be, at best, neutral across the income distribution or tend to hit the least well-off harder than the best-off."

The commission's proposals, published in a 176-page dossier, were set out today by Mr Osborne at a presentation in London.

Speaking at that launch, Mr Osborne said there was a "strong case" for a fundamental shake-up of business tax to pay for a big cut in rates.

He said: "I share the commission’s central conclusion that if Britain is to remain a prosperous nation with a high standard of living, tax reform is urgently required.

Times Recommends

• Please help: maimed children of war want their lives back
• Unlocking the cruellest prison
• Prince Charles named in £81m court battle