Tory leader David Cameron has hinted at possible tax cuts declaring Britain had "reached the limits of acceptable taxation and borrowing".

Mr Cameron stopped short of promising immediate reductions if he gained power but left no doubt that one of his priorities would be to reduce the burden on taxpayers over the longer term.

He promised a return to "good Conservative principles of good housekeeping" to reduce waste in Government spending and said a Tory Government would be able to increase spending on essential services without raising taxes by tackling the social problems - such as family breakdown, unemployment and addiction - which cost the state most money.

In a speech in Birmingham, Mr Cameron said the public were increasingly angry with Labour because they saw their taxes going up without any corresponding improvement in the quality of their lives.

He accused ministers of being "shockingly casual about public money and how it's spent" and said that billions were being wasted because of a "spendaholic culture" in Government.

He accused Mr Brown of a "superficial" politics which promised great things but failed to develop the policies to deliver them.

"There's a real sense of unfairness that people are feeling today," said Mr Cameron.

"They feel that Labour have broken the basic bargain between Government and the people, the bargain that says: 'We'll take money off you in taxes, and you'll get decent quality services in return'.

"After a decade of reckless spending under Labour, Britain needs good housekeeping from the Conservatives.

"We need to start living within our means. Why? Because in the decades ahead there will be pressure to spend more on the essentials - whether that's care for the older generation, equipment for our armed forces, or more prisons and police to keep us safe.

"At the same time, we have reached the limits of acceptable taxation and borrowing.

"With the rising cost of living, taxpayers can't take any more pain. Indeed, they want a Government that can give them the prospect of relief. And our economy can't take any more pain without losing jobs to lower tax competitors."

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