DAVID Cameron has warned better-off Britons to be ready for further tax rises before the 2015 General Election.

The Prime Minister claimed there was a need for another £16 billion of spending cuts in 2015-16, but declared the country's wealthiest people would have to pay their fair share.

He added: "We have to find these spending reductions and if we want to avoid cuts in things like hospitals and schools, services that we all rely on, we have to look at things like the welfare budget."

Setting himself at odds with his deputy Nick Clegg, Mr Cameron ruled out a mansion tax, but he said: "We are going to take further action to make sure the wealthiest people in our country pay their fair share towards deficit reduction."

His comments came ahead of George Osborne's speech to the Conservative Party conference today, in which he is expected to say more than £10bn of welfare cuts need to be found by 2016-17.