TORONTO - A Progressive Conservative victory in Ontario's fall election would mean lower taxes and smaller government, Opposition Leader Tim Hudak promised Toronto's business elite Wednesday night at the party's largest-ever fundraising dinner.

"If it cannot justify itself it goes," Hudak pledged. "We need change, and I will bring that change."

Ontario is fading under the Liberals, he warned, "because the McGuinty government is out of touch, obsessed with its own projects and unaware of the consequences of spending too much in good years and bad."

"Over the past decade, the economic performance of Ontario -- as measured by GDP per capita -- has been the worst of any Canadian province," Hudak said. "We have fallen into have-not status, and our unemployment rate has exceeded the national average for 51 consecutive months."

Hudak was dwarfed by the giant television screen behind him, which displayed graphics to emphasize his points -- much as Premier Dalton McGuinty has been doing since January with his economic slide-shows and speeches to Chambers of Commerce and Rotary Clubs all across Ontario.

But Hudak's relatively brief speech, and his themes, were decidedly different from McGuinty's lengthy presentations.

Hudak stressed that Liberal broken promises, tax hikes, the doubling of the province's debt and electricity policies are driving Ontario to ruin.

"If we continue down this path we may not recover," warned Hudak. "I will not accept that fate."

A smaller government that doesn't spend more than it takes in is what Ontario voters can expect if the Tories win the Oct. 6 election, vowed Hudak, staking out his small-c conservative ground.

"Instead of runaway spending that jeopardizes government services for future generations, I will make government live within its means," he said. "Instead of raising taxes for most, while lavishing special breaks for the favoured few, I will offer a plan to cut taxes across the board."

Either spending has to be restrained or taxes must be raised, said Hudak, "And I won't raise taxes."

McGuinty will raise taxes, the Tory leader warned as he predicted the Liberals will demonize the PCs in what he called an "ugly" attempt to scare voters in advance of the fall vote.

The Progressive Conservatives said they would pull in a party-record $2.5 million on the fundraiser, after having sold 1,800 tickets.

Business leaders in Toronto usually hedge their bets, especially in an election year, and attend both Tory and Liberal fundraisers, but many were anxious to get a look at the man who is leading in the public opinion polls, even though few voters actually know who he is.

The Liberals have criticized Hudak for failing to release his campaign platform or say exactly how he plans to cut taxes while the province is dealing with a deficit of nearly $17 billion.

The Conservatives are not expected to unveil their platform until after the federal election on May 2.