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Cameron sets out his three-pronged plan to revive Britain's economy

By Tim Montgomerie
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The Prime Minister has written an article for tomorrow's Financial Times on his "three-pronged plan to revive Britain's economy". The piece is already online (£). Here are its key messages:

  • Britain will not retreat from deficit reduction: Mr Cameron outlines the benefits that the Coalition's austerity measures have produced: "We have market interest rates of just 2.5 per cent – half what they are in Spain or Italy. Earlier this month, the same credit rating agency that downgraded the US confirmed our triple A rating."
  • Strengthening Britain's competitiveness: The PM lists four top things already underway (1) raising the pension age; (2) cutting corporation tax; (3) reshaping the welfare system so that work pays; and (4) credit easing. He then focuses on a fifth - Britain's infrastructure. Noting that the UK ranks 28th in the world in quality of infrastructure Mr Cameron says this "is as serious as our budget deficit" and goes on to promise faster funding of construction projects and deep planning reforms so that the UK can get the energy, transport and broadband infrastructure it needs.
  • Unlocking global trade: The PM does not announce any new measures to kickstart trade talks but notes that the UK's bilateral trade with India is up by 20% in the last year and exports to China are up 40%. Since he became PM he has invested a lot of time in economic diplomacy, taking many of Britain's biggest businesses to China, India and Russia, for example.


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