Britain will hold a referendum on its membership of the European Union within the next 12 months, the Independent on Sunday has said, as the Prime Minister believes pressing ahead with a vote gives the best chance to win concessions from the rest of Europe.

Prime Minister David Cameron plans to announce the timing of the vote at the Conservative Party's conference in October, the newspaper said, with polling day pencilled in for June 2016.

Cameron pledged to hold an in-out referendum on Britain staying in the EU by the end of 2017 in the Conservative manifesto for national elections in May.

After scoring a decisive win, he embarked on a tour of European capitals to drum up support for his programme.

Changes to the way benefits apply to migrants coming to Britain from other European countries and an opt-out from further integration are some of the reforms Cameron is seeking.

A spokeswoman at Number 10 declined to comment on the report.