Cameron promises to build dynamic economy

Highlights from David Cameron's first speech as Prime Minister.

The problem - our imbalanced economy: "Our economy has become more and more unbalanced, with our fortunes hitched to a few industries in one corner of the country, while we let other sectors like manufacturing slide. It has become over-reliant on welfare, with mass worklessness accepted as a fact of life and around five million people now on out-of-work benefits.  It has become increasingly hostile to enterprise, with business investment in the past decade growing at around one per cent each year – only a quarter of what it was the decade before. It has become far too dependent on the public sector, with over half of all jobs created in the last ten years associated in some way with public spending. And, of course, as a country we have become indebted on an unprecedented scale.  Our huge deficit and rapidly growing public debt are the clearest manifestations of our economic mistakes – the glaring warning sign overhead telling us we have taken the wrong route."

The Coalition will eliminate "the bulk" of the deficit: "On 22nd June, we will have an emergency Budget, setting out how we will cut the bulk of our deficit over the course of this Parliament, giving this country what it has been desperately lacking – a credible plan to live within its means."

Action to help business is already underway: "We’ve abolished Home Information Packs, making it easier to sell a home and supporting our housing market while it is still fragile. We’ve announced a moratorium on business rates, including for many businesses based at our ports, offering immediate help to firms struggling because of this unfair, unjust tax. Today we announce a new fast-track system for international patents to reduce the global backlog which stifles growth and enterprise and costs the global economy £7.6 billion for every year patents are delayed."

Deregulation: "The most important change is our new ‘one-in-one-out’ rule for regulation.  It’s simple: if you’re a Minister who wants to bring in a new piece of regulation, first you’ve got to find an existing one to get rid of.   No-one should underestimate how revolutionary this is.  For a long time, the whole business of Whitehall has been about creating new regulations.  This new rule completely blows that culture apart." Read Iain Murray on the potency of the Coalition's deregulation agenda.

Action on transport, broadband, schools and welfare: "In the next five years the first works should start on a high speed rail network.  The cables of super-fast broadband will be laid. The first Carbon Capture and Storage projects will be under way... Michael Gove has invited all schools in our country to break free from bureaucratic control and enjoy new freedoms so they can set more of their own curriculum, pay new teachers more, restore discipline... Iain Duncan Smith has set in train the most radical reforms to welfare since the welfare state was born – so we truly reward work and support those who need help."

Free trade: "The UK exports more to Ireland than to Brazil, Russia, India and China combined.  So the scope for future expansion is simply enormous if we could get the right trading framework in place.  I will work with my European partners to push forwards with Free Trade Agreements between the EU and its key trading partners.  Concluding a trade agreement with India is a priority.  Existing EU-India trade is worth around £50 billion per year, so the potential in an EU-India Trade Agreement for trade, economic growth and jobs is considerable and we must grasp it with both hands."

Full text here.

Tim Montgomerie