David Cameron says a Conservative government would not match Labour’s increases in public spending, in a major policy shift.

In a broad speech laying out the Conservatives’ economic philosophy, Mr Cameron said Gordon Brown’s recent approach required so much future debt the Tories would have to find a new approach.

“Growth rate for 2010 will have to be lower than that pencilled in by Labour,” he said.

The statement marks an important break on Conservative economic policy, which until this morning was pegged to Labour spending.

While professing himself to be dedicated to helping people who had lost their jobs or were in danger of losing their homes, Mr Cameron launched a robust defence of his low tax, low debt policy.

“Some people think this commitment is redundant in a recession,” he said. “I repeat our commitment is not for one year, not even for one term, but for an economic cycle,” he said.

As part of his stall setting out what a Conservative financial agenda would look like, Mr Cameron made the case against regulation as a hindrance to growth.

In terms of fiscal policy, he argued the recessionary effects of falling revenue and increased benefits spending should be allowed to happen – but not without further borrowing.

His argument against borrowing came down to an evaluation of the risks against the evidence showing such a tactic works.

In terms of risks, Mr Cameron said taxes would have to rise and funding for education public spending would decrease in order to service growing interest on debt.

Further borrowing would also damage confidence, causing investors to lose faith in the national economy and lead to further depreciation of sterling.

The current estimate for growth in 2010/11 is jus over two per cent. The Conservatives did not reveal their own estimate today, but announced their disagreement with the figure, which they consider optimistic, and their intention to therefore disassociate themselves from Labour spending.

“They’ve made their choice, we’ve made ours,” Mr Cameron said.