Next month's pre-Budget report will see the prime minister get tough on private equity taxation after he announced that he would close some of the tax loopholes enjoyed by private equity companies.

This was revealed when Gordon Brown responded at a question and answer session at the Labour conference, hosted by the TV presenter Mariella Frostrup.

The prime minister told his audience: 'Private equity will be dealt within the PBR. I can assure you that we will do so.'

The announcement is likely to come on the same day as the comprehensive spending review.

However, the Guardian reported the timing of the joint announcements was likely to be affected by Brown's decisions on whether to call an election.

Further reading:

Private equity groups may quit UK over new tax rules

US takes cautious route on private equity tax