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The row has escalated because Mr Herbert had expressed similar view in a November 2002 Spectator article.

But the new candidate for Arundel and South Downs insisted he was "absolutely supportive" of Michael Howard's plans for the British economy.

Labour's election chief Alan Milburn said Mr Herbert's selection for Arundel and South Downs had "confirmed the Tories' secret cuts agenda".

Mr Milburn added: "In November 2002, Nick Herbert wrote in the Spectator: 'The whisper is that there is a top secret, extremely clever strategy afoot: go along with spending rises now, but return to a tax cutting agenda when - if - the party is re-elected.'

'Supportive'

"Howard Flight was not a one off. Cutting public services is the ideological obsession of today's Conservative Party."

But quizzed shortly after his selection as a Tory candidate about what he had written, Mr Herbert said: "Think tanks exist to provoke and challenge, parties exist to set policy."

He added: "I continue to believe that Michael Howard's policy of offering tax cuts ... is exactly the right one.

"It is the only party to have done so."

Mr Flight was a key architect of Tory economic policy and was involved in setting up the James review into public spending, which identified �35bn of savings.

Opinions in print

He was banned from standing as an election candidate after hinting further tax and spending cuts would be possible once the Conservatives were in power.

Earlier Harold Hall, the vice-president of the Conservative Association in Arundel and South Downs, expressed surprise that, given what had happened to Mr Flight, Mr Herbert was even being considered.

Mr Herbert is the new candidate for Arundel and South Downs

"I get the impression from looking at this article [written by Mr Herbert] that he wants to see a progressive programme where we cut taxation and that would have to be at the expense of public services.

"In other words he is on the very course that Michael Howard doesn't want greater publicity given to at this point in time."

Mr Howard's decision to ban Mr Flight from standing as a Tory election candidate.

That decision caused anger in the constituency, with many members complaining the party leader's action was draconian.

Mr Flight had been calling for a meeting of his local Conservative Association at which he would be reaffirmed as candidate or de-adopted, but his bid was unsuccessful.

Apology

He had said his lawyers had told him only local Tory members, not the party's leadership, could decide to remove him as their candidate.

But now the MP has made clear at the candidate selection meeting that he no longer intends to continue the fight.

"Above all I would not want to be responsible for tearing apart the Arundel and South Downs Constituency Association," he said.

"I apologise for the trouble which this media spin incident has caused you all, and especially to the officers who, I appreciate, have been placed in a very difficult position."