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

MANCHESTER, England, Sept 29 (Reuters) - British PrimeMinister David Cameron said on Sunday that the government mustcut taxes, create more jobs and stick to its budget deficitreduction plans if it is to secure the economic recovery andease the pressure on squeezed households.

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

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