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Britain's Cameron says recovery, tax cuts key to easing high living costs

MANCHESTER, England, Sept 29 (Reuters) - British Prime Minister David Cameron said on Sunday that the government must cut taxes, create more jobs and stick to its budget deficit reduction plans if it is to secure the economic recovery and ease the pressure on squeezed households.

"The only way to sustainably raise living standards is to keep the recovery going, and the economy is now moving, to keep on creating jobs...to keep on cutting the deficit," Cameron told BBC television.

Cameron said the housing market is recovering, but denied that a house price bubble is building. On Europe, he said he wants a "very radical" renegotiation of Britain's ties with the European Union.