Reform-minded upper-house LDP politicians like Mr Hayashi say they would be prepared to support the DPJ on issues such as the consumption tax if it scraps some of its more reckless public-spending proposals, such as universal child allowances.

ECONOMIST: Japan's upper-house elections

The LDP, which gave more detail on the need for higher consumption taxes in its manifesto, found the idea gained little momentum, said Yoshimasa Hayashi, a politician in the party who campaigned with upper-house candidates in rural areas.

ECONOMIST: Japan's upper-house elections