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Highlights of David Cameron's first broadcast interview since becoming Prime Minister

Highlights, not verbatim, of David Cameron's interview with Andrew Marr from 10 Downing Street.

MarrCameronAt10 David Cameron decided on the Friday morning immediately after the election that he wanted to form a Coalition with the Liberal Democrats. He and Nick Clegg agreed in their negotiations that a minority government was easier in the short-run but "less inspiring".

When it comes to Government appointments, the Prime Minister will decide but Nick Clegg will be involved in the decisions.

A "longer form" coalition deal will be published in the next two weeks but the key to making the arrangement work will be the relationship with Nick Clegg and between members of the Cabinet. He had asked Tory frontbenchers to seek wisdom from backbench Liberal Democrats who were specialist in their portfolios and Liberal Democrat frontbenchers like Chris Huhne to seek the advice of Conservative MPs with a track record of interest in green issues.

The new Prime Minister said that the two parties will sit in distinct blocs in the House of Commons. We will fight each other hard in by-elections although hopefully in a more civilised way. There won't be 'political Cabinets' without the Liberal Democrats. Party caucusing should be minimised.

We are discovering, by the day, bad spending decisions taken by Labour including large bonuses for civil servants. [Key Cabinet ministers were making this point in today's press].

George Osborne will tomorrow launch an independent audit of the public finances. [This is the Domesday analysis that ConservativeHome predicted last year].

A VAT rise "is not something we plan to do".

Because of the gap between 18% capital gains tax and the 50% top rate of income tax we are seeing many people classify income as capital gains. This needs to be addressed but we want top distinguish between personal gains - eg on the sale of a second home - and entrepreneurial investments.

Tory voters should know that the Coalition will stop the jobs tax, put a cap on immigration and stop any further transfers of power to the EU unless there is a full referendum involving all British voters.

He denied that he had buried the old Conservative Party. The Coalition is consistent with the five years of opposition, during which time he had consistently promised to achieve progressive ends with conservative means. He agreed that this was, in total, a "Liberal Conservative" government.

Mr Cameron defended the new 55% constitutional rule and said that the vote would be whipped [George Young explained the rule on Friday].

Tim Montgomerie

1.15pm WATCH: Talking to Andrew Marr, Cameron denies Coalition plans to increase VAT


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