Prime Minister David Cameron has promised a "better time ahead" as he acknowledged that families are suffering difficult times due to the uncertain economic situation.

Speaking at the Conservative Party conference in Manchester, Mr Cameron said the Government is taking action where it can help to keep families' bills down, citing Chancellor George Osborne's announcement on Monday of a one-year council tax freeze.

But he insisted that he would stick to the deficit reduction package of cuts and tax rises, warning that interest rates would rise if the international money markets lost confidence that Britain was paying off its debts.

The Prime Minister told ITV1's Daybreak: "The whole message of this conference is that we know things are difficult, we know families face difficult times right now, but we have got to show the leadership to make the right decisions and get us through this difficult time and get to a better time ahead."

Mr Cameron said: "I completely understand that families today do see the prices at the petrol pump high, food prices have gone up. Many people, particularly in the public sector, have had their pay frozen.

"I understand the difficulty people are going through, so the council tax freeze is helpful because that is one bill that is not going up. All the time, we are looking to see is there spare money we can use to help Britain's families get through what is a difficult time."

The PM insisted it was "completely unfair" to say the Tories were supporting the rich. "Overall the richest 10% are going to pay 10 times more tax than the poorest. I think this is a fair way to reduce the deficit."

Mr Cameron said 250,000 extra apprenticeships being created would give people the skills they needed to join a "successful, balanced economy where people can do fulfilling jobs". He continued: "We shouldn't overdo the gloom, but neither should we try and paint a picture of a land of milk and honey that we are not going to create in five years."

The Prime Minister also insisted he would not "repump the bubble" of the housing and financial boom that "left so many behind".

PA