Isabel Hardman

George Osborne is currently giving his speech to the Tory conference, which is being well received - particularly impressive in this flat hall. He focused initially on the argument that fixing the economy is the way to solve the cost of living crisis. But his MPs will also be heartened that he didn't stop there. The Chancellor has just told the conference hall that, provided the savings can be found, he wants to freeze fuel duty for the rest of this parliament. This announcement came at the end of a passage on the sort of people the Conservatives want to stand beside: the factory and warehouse workers that the Chancellor has visited in the past few months. The message: you trusted the Tories with the economy, now keep trusting them to lift all the boats, not the yachts.

How can the Conservatives deal with Labour's attack on the cost of living? As I explained last week, the party believes that the best way to address the opposition's focus on living standards is to talk about the bigger picture rather than the 'footling little things'. Senior Tories I've spoken to in the past week are very confident indeed that because they enjoy the trust of voters on the economy, while voters still blame Labour for the mess, they don't need to worry about the strategy that Ed Miliband has adopted. One senior figure remarked to me this weekend that 'Labour has mis-fired: when we've got such a poll lead on the economy, why should voters think anything Labour has to say about cost of living is credible?

listen to ‘Hammond: 'A Conservative government will never send our forces in to battle without the right kit'’ on Audioboo Philip Hammond's speech to the Conservative conference was accompanied by the set of circumstances that most ministers have bad dreams about after eating too much cheese. First he was interrupted by two men in military clothing, shouting about defence cuts and fusiliers. 'I'll come and talk to you later, let me finish my speech,' the Defence Secretary said, hopefully. The man didn't stop, and was escorted from the floor, followed by a cloud of journalists scribbling away and enthusiastic photographers. Then the giant screens behind Hammond that were beaming two massive shots of his head out across the Manchester Central hall went dead.

Manchester Central is a beautiful, cavernous conference venue. But it also seems to be acting as a bit of an atmosphere sink today. When Grant Shapps bounded onto the conference stage after the party's tribute to Baroness Thatcher, he might have expected that his speech, which was full of the sort of fare that Tory grassroots love - attacks on Labour and the trade unions and a reminder that Abu Qatada no longer haunts these shores - would have gone down to uproarious applause. But though delegates clearly liked his speech, they never really warmed up. If this continues through the week, it won't help diminish the impression that political conferences are dying.

One of the key dividing lines in 2015 will be over what sort of action each of the parties proposes to take over filling the financial black hole. The choice is between tax rises and spending cuts, and the Tories were first out of the blocks to make clear that they want to focus on spending cuts, specifically shaving more money from the welfare bill, as part of their election offer. James first revealed this in his Mail on Sunday column in June, and then George Osborne ruled out tax rises at a press gallery lunch the following month. At the time, he said: 'I think this can be delivered through spending and savings both in welfare and in departments, and there is no need for tax rises to contribute to that fiscal consolidation.