Alistair Darling today did not deny that he had raided the Conservative election locker in yesterday's Comprehensive Spending Review, stealing flagship proposals on inheritance tax.

In an electioneering Autumn Budget that lacked only the election, the Chancellor adopted one Tory plan after another, including charging “non-domiciled” wealthy foreigners living in Britain and switching air travel duty from passengers to flights.

Opponents accused the Government of “scrabbling around in panic” to think of something to say to the country.

But Mr Darling’s attempt to grab back the initiative from the Tories came at the expense of a further worsening in government finances. He will raise almost £2 billion in extra taxes over a four-year period and borrow a further £15 billion.

Spending on health and education will rise in real terms, but by far less than in previous years. Mr Darling announced that spending in the NHS in England would rise from £90 billion to £110 billion over the next three years.

Accused on BBC Radio 4's Today programme this morning of stealing the Tories' flagship policies, Mr Darling did not deny it, although he claimed that yesterday’s tax moves had been under consideration for some time.

“I gave an interview just after I became Chancellor (in June), in which I said I was looking at a full range of tax issues,” he said.

“I said I would make my announcements not then, but in the Pre-Budget Report or in the Budget next spring. I’ve done that and that’s what I intend to do.”

The difference, he said, was that unlike the Tories his proposals were fully costed and affordable, adding that he could make the changes he was bringing in because of the strong economy the Government had presided over.

“The big question people are going to ask themselves is which party, which government, can actually meet people’s aspirations?” he said.

Mr Darling also hinted that there would be reforms of means-testing in long-term care for the elderly and disabled. “I think we can make changes,” he said, but refused to give further details before forthcoming announcements.

Labour MPs were delighted that Mr Darling had moved swiftly to neutralise the Conservative plan to exclude estates under £1 million from inheritance tax. The Chancellor promised to increase the threshold for couples to £600,000. which would rise to £700,000 by 2010. He said the move would give certainty to up to 12 million families.

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