Speculation is growing that Gordon Brown is planning a £15 billion tax cut to boost the economy.

The Prime Minister fuelled expectations of tax cuts in the upcoming Pre-Budget Report when he said there was an "emerging consensus" internationally on the need for fiscal policy to support interest rate cuts.

Mr Brown and Chancellor Alistair Darling have stated that now is not the time to take money out of the economy, as businesses look for consumer spending to fuel growth.

The Treasury refused to comment on the contents of Mr Darling's PBR, and dismissed media reports of impending tax cuts as "speculative".

Several newspapers claim Mr Darling is set to announce up to £15 billion of cuts aimed at helping the elderly and low-income families.

Conservative leader David Cameron warned that the tax cuts reportedly being considered by Mr Brown would risk higher interest rates and higher taxes in the future.

It is thought the Conservatives are preparing to unveil new tax cutting proposals within the next few days, aimed at staving off unemployment.

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