TAXATION and public spending look likely to form the central battleground for the next election.

During the coming year or so, voters will be presented with various economic visions from the three main parties, each clamouring to prove theirs the most persuasive argument.

The Tories today boldly went further than even Mrs Thatcher managed by promising to slash £35 billion from public spending.

The Conservatives have, in theory at least, always been a tax-cutting party. If Shadow Chancellor Oliver Letwin is to be believed, the party now has a brave new economic blueprint that will save untold billions from the nation's tax bill - without harming the key areas of health and education.

And there is more. The Tories, according to Mr Letwin, will be able to save money while improving services.

This is good rabble-rousing stuff from a party which has a new spring in its step thanks to the leadership of Michael Howard. The party made a small fuss on Saturday about Mr Howard's first 100 days in charge, and while no one could deny his powers of rejuvenation, it has to be pointed out that 100 days is not a long time.

As for Mr Letwin, he is playing the political conjuror, pulling economic rabbits out of his hat with a well publicised flourish. Whether or not the audience should applaud at this point is still in doubt.

As magic tricks go, this was certainly diverting. The Tories need to reinvent and re-brand themselves, yet their proposals have to be realistic and workable. The once-shiny New Labour bandwagon now carries a fair few scratches and bumps; prime minister Tony Blair has cracks in his Teflon-coated armour; yet Labour is still a political force to be reckoned with.

So Mr Letwin's ambitious proposals will have to be fleshed out before voters will believe he isn't just playing with figures.

Updated: 10:02 Monday, February 16, 2004