Cameron signals possible tax rises

Conservative leader David Cameron has suggested that his party might be forced to increase some tax rates if it wins the next general election.

While Mr Cameron did not specifically say whether businesses would be hit by any future increases in taxation, he suggested that such measure might be necessary to balance the books.

He explained on Radio 4's Today Programme: "[The] government always has to do what is right to safeguard the public finances."

However, in a speech to the Confederation of British Industry, the Tory leader seemed to signal the businesses might be asked to bear the brunt of higher taxes.

He stressed that action "to help employees, homeowners, savers and families" is needed, suggesting they will not face rising tax rates.

Despite this, the conservative leader also showed he was considering the finances of businesses. He said: "I can announce today that we will consult on taking the best aspects of the American Chapter 11 system and give good companies breathing space to allow them to rescue or restructure the business in the face of the credit crunch.

"This change will ensure that fewer good companies end up in liquidation - and fewer people lose their jobs through no fault of their own."