THE Tory deputy chairman was sacked last night after admitting that the scale of his party’s planned spending cuts is being concealed because “whatever the fine principles, you have to win an election first”.

Michael Howard moved to limit the damage after learning that The Times had a tape recording of remarks made by Howard Flight on Wednesday night. Mr Flight, the Conservatives’ special envoy to the City, had been speaking at a private meeting of the Thatcherite Conservative Way Foward group.

When Shadow Chief Secretary to the Treasury, he set up the James review into public spending which identified the £35 billion savings that will be the Tories’ flagship policy.

But he told his audience: “The potential for getting better taxpayer value is a good bit greater than the James findings [which have been] ‘sieved’ for what is politically acceptable and what is not going to lose the main argument.”

Mr Flight hinted that further cuts would be possible once the Conservatives were in power because “everyone on our side of the fence believes passionately that it will be a continuing agenda”. He said that, after an election had been won, “you can actually get on with what needs to be done”.

He described proposals to give pensioners council tax rebates as “nakedly political”, and suggested further promises would include raising income and inheritance tax thresholds “so that Middle England comes out of the equation”.

Mr Flight was cheered loudly when he promised to fight for Thatcherism inside a Conservative administration. “The real issue is, having won power, do you then go to it? Then we’re back to ‘Wets’ and ‘Dries’ and all that happened in the 1980s. And be sure where I stand once we gain power.”

Mr Flight apologised to his party leadership last night, saying: “I regret my choice of words which do not accurately reflect the process of the James committee.

“I want to make it clear that the conclusions of the James committee represent the settled view of the Conservative Party on cutting waste, removing unnecessary bureaucracies, giving taxpayers value for money and protecting and enhancing frontline public services.”

His decision to quit came within two hours of The Times presenting party officials with a transcript of the tape. The Tories have been trying to convince voters of their economic competence by presenting modest proposals for £4 billion of tax cuts and saving £35 billion from Whitehall “waste”.

In the 2001 campaign, remarks by Oliver Letwin about long-term plans for £20 billion of tax cuts undermined the Tory campaign.

Mr Flight is not the first Tory to resign after speaking out of turn on the sensitive territory of tax and spending plans. Danny Kruger, a senior researcher at Conservative headquarters, was forced to step down as candidate in Tony Blair’s Sedgefield constituency this month after he called for a period of “creative destruction in the public services”.

The Conservatives plan to announce their remaining tax cut pledges over the next few weeks. Speculation is mounting that they will raise the threshold of the 40 per cent income tax band, free thousands of middle income earners from paying at the higher rate.

Labour is convinced that Conservative plans for a £35 billion cut in public spending over six years will alarm voters. Ministers have argued that no Government could cut spending by such an amount without hitting key services. They seized on Mr Flight’s remarks as evidence that the £35 billion was only a start.

Paul Boateng, the Chief Secretary to the Treasury, said last night: “Howard Flight has let the cat out of the bag by revealing an agenda for substantial cuts to public spending. Just like John Redwood who called the Tories’ cuts plan just a ‘down payment’, Howard Flight has told the truth about their continuing agenda for cuts, admitting they would have to win the election before they tell the truth about their cuts plans.”

John Reid, the Health Secretary, said: “Howard Flight has been sacked for telling the truth about the reality of what the Conservative Party stands for — massive cuts in public spending.”

The disclosure comes as Labour prepares to attack Tory plans to allow patients who go private to take the NHS cost of the operation with them. The price of funding all those who pay out of their own pockets has been put at £1.2 billion.

Mr Reid is due to unveil a poster today after Labour polling showed that voters are not aware of the detail of Tory health plans.

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