British finance minister George Osborne has promised to further squeeze the welfare budget if his Conservative Party wins re-election next year, insisting that balancing the books remained his priority.
In a speech to the annual Tory conference, Osborne stayed on message despite a sexting scandal and the defection of a MP that overshadowed the start of the gathering in England's second city Birmingham.
He said Prime Minister David Cameron's Tory-led government had slashed the deficit by almost half since taking office in 2010, but added that "difficult decisions... are still required to fix the economy".
Osborne vowed to freeze state benefits for the working-age population for two years from 2016, a measure that would save STG3.0 billion ($A5.5 billion).
He also said he would reduce the maximum level of benefits a household can claim to STG23,000 a year from STG26,000 to fund youth training schemes.
The opposition Labour Party last week promised to raise the minimum wage to counter a decline in living standards caused by stagnant wage growth after the recession.
In another voter-friendly measure, Osborne vowed to clamp down on tax avoidance by international technology firms.
Multinational digital giants such as Apple and Google have been accused by campaigners of using tax strategies that minimise their payments around the world.
"Some technology companies go to extraordinary lengths to pay little or no tax here," Osborne told delegates.
"And my message to those companies is clear: we will put a stop to it. Low taxes, but low taxes that are paid."
Osborne's announcements helped the party leadership regain some control after the defection of MP Mark Reckless to the anti-immigration, anti-EU UK Independence Party (UKIP).
A second shock came after junior minister Brooks Newmark resigned on Saturday after the Sunday Mirror tabloid said he had sent an explicit photo to an undercover reporter.
Cameron, who will make his keynote speech to the party conference on Wednesday, admitted it had "not been an ideal start" to the annual gathering.
Share
