David Cameron has ordered his shadow cabinet to recommend spending cuts in their policy areas by next year, as the Tory leader hardens up his economic policy ahead of a potential spring general election.

The Conservatives would fight the next election on a commitment to impose harsher curbs on public spending than Labour, Mr Cameron said on Tuesday. Adopting his toughest fiscal stance to date, the Conservative leader pledged an era of “good housekeeping” to compensate for Labour’s “decade of reckless spending”.