Clarke hints at tax rises for families

London: Tory heavyweight Ken Clarke has raised the prospect of tax increases for millions of families as Britain struggles in the economic downturn.

The shadow business secretary appeared to hint that David Cameron may increase taxes within months of entering Downing Street, if he wins the May general elections.

He also suggested that the Conservatives risked appearing a "bit bland", and in words likely to delight Gordon Brown warned that setting out detailed public spending plans during an election debate filled him "with the greatest horror".

Clarke electrified the tax and spend debate by saying he is strongly opposed to higher levies on businesses during the economic difficulties.

"I do think if you're looking for tax increases in a recession, it's obvious that you don't look in the first place to business," he told the Financial Times.

Inevitably, his suggest Tory tax rises would hit families and households. The Conservatives could increase VAT, freeze personal allowances or increase green levies. Raising income tax would spark a huge row.

Cameron has made clear a Tory administration would have to take tough decisions, with deep cuts expected in government departments.