Tories 'planning to cut schools budget by 10%'

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Education, defence, the Home Office and transport - which is in charge of the £16billion Crossrail project for London - are all earmarked for deep reductions under the confidential proposals.

Treasury chief secretary Yvette Cooper said Tories were plotting cuts while trying to reassure voters the party had changed.

Fraser Nelson, the Spectator magazine's political editor, today claimed that "while no announcements have been made, the Tory plan is for a 10 per cent reduction" in defence, education, transport and Home Office.

Until now, Mr Cameron has refused to say precisely how he would fulfil his pledge to cut the nation's soaring debts.

Ms Cooper contrasted the cuts plan with Mr Cameron's pledge to reduce inheritance tax on homes worth £1million or less. She said: "A 10 per cent cut in education and vital services while they still promise inheritance tax giveaways for millionaires is a devastating indictment of Tory priorities."