Britain's Prime Minister David Cameron with EU leaders in Brussels
Britain's Prime Minister David Cameron (C), Finland's Prime Minister Alexander Stubb and Denmark's Prime Minister Helle Thorning-Schmidt (R) arrives for family photo session at the European Union Reuters

David Cameron, Prime Minister of the UK has announced liberal tax cuts to almost half of the British population, in case he is re-elected next year. Making an apparent bid to fend off the Labour challenge accentuated by the frequent defection of his MPs to UK Independent Party (UKIP), Cameron hopes to win over the sizable British middle class.

With tax cuts, Cameron is also trying to undo the schism inside his Conservative party over the demand for UK reviewing its ties with the European Union. Cameron's promise may cost over 7 billion pounds (US$11.35 billion). Hope is that it will shore up the Conservative party's moribund rating in the opinion polls where it has been trailing behind the main opposition Labour Party, reported Reuters. Cameron is hoping that the tax cut sweetener will balance a less enticing promise to freeze welfare pay cheques and slashing of state spending.

Party Conference

Addressing a packed concert hall at party's annual conference in Birmingham, Cameron asked, "What's it going to be?" He then answered it himself-"I am saying we will not back to square one. Let us finish what we started." Cameron told his party rank and file that he wanted to be re-elected with a big majority to govern alone with out the pressures of a coalition.

Cameron also touched upon the sensitive topic of healthcare and promised increased spending on the National Health Service. For majority of voters, health is a priority and they perceive Labour as more sincere in that. Cameron also reiterated his party's main rallying cry--not to vote UKIP. The Conservatives are keen to present the 2015 election as a straight contest between Cameron and Ed Miliband, the leader of the Labour party. Cameron, in his speech touched upon the EU relations and promised to renegotiate EU ties after holding an EU membership referendum in 2017.

Deficit Problem

The Wall Street Journal reported that Cameron is struggling to keep his promise to bust the UK deficit by 2015. This was the plank on which he campaigned for the last election, four years ago. Cameron now knows economy will be one of the main battlegrounds of the 2015 election. The Labour party has been blaming the government's focus on austerity and squeezing the pockets of Britons with consumer prices outpacing wages for many years. But Mr. Cameron is hoping that that the message of tax cuts will bring a good victory at the hustings.