But a senior Lib Dem warned that the priority was to get young people into work, training or education to avoid "repeating the mistakes of the 1980s".

BBC: Cameron suggests cutting housing benefit for under-25s

Speaking on the eve of a review of monetary policy by the Bank of Japan, Noda also vowed to work with the central bank more closely to support the economy, repeating wording the government has used in the past to pressure the central bank.

MSN: Japan PM signals election can wait, defies opposition