This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/8710071.stm
The article has changed 7 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Cameron to outline economy plans | Cameron to outline economy plans |
(39 minutes later) | |
David Cameron will outline plans to "transform" the economy in his first major speech as prime minister. | David Cameron will outline plans to "transform" the economy in his first major speech as prime minister. |
Mr Cameron, who will speak at an event in Yorkshire, will claim the economy has been heading in the wrong direction under Labour for years. | Mr Cameron, who will speak at an event in Yorkshire, will claim the economy has been heading in the wrong direction under Labour for years. |
He will also talk of rebalancing the economy in favour of manufacturing, business and the private sector. | He will also talk of rebalancing the economy in favour of manufacturing, business and the private sector. |
He told GMTV critics of a planned rise in capital gains tax (CGT) should "calm down a bit and wait for the Budget". | |
Some of his own senior Tory MPs have attacked the planned rise on non-business CGT - which could see second home sales taxed at a rate of 40% or 50% - as a tax on the middle classes. | |
'Be calm' | |
But Mr Cameron urged them to wait for the Budget. He told GMTV: "People don't yet know what our proposals are. Everyone's getting a bit ahead of themselves on this issue." | |
He added: "We have to be calm about this because in a coalition there are inevitably going to be arguments and discussions about tax policy and other policies. And sometimes these will happen much more in the open than in the past." | |
The decisions we make now will live with us for decades to come. For many years we have been heading in the wrong direction David Cameron | |
On Thursday Lib Dem Business Secretary Vince Cable insisted the coalition government was not split over the planned CGT rise - adding it would help fulfil the Lib Dem aim of bringing more "fairness" to the tax system. | |
He told the BBC: "It's very important that we have wealth taxed in the same way as income." | |
In his speech on Friday Mr Cameron will stress the need to cut the £156bn deficit and get people back into work. | |
Spending cuts | |
He is expected to say that his government intends to spread economic growth across regions and industries and end the "inevitability" of millions on long-term welfare. | |
Work and Pensions Secretary Iain Duncan Smith has said Britain's welfare system is "trapping" poor people in poverty. | |
Mr Cameron will argue that the economy has become too dependent on the public sector, over-focused on the City at the expense of manufacturing, and with too many people reliant on welfare. | |
But although he will set out his longer term aspirations, the issue of potential tax rises and spending cuts are not expected to be mentioned until the Budget next month. | |
In his speech, Mr Cameron will say the country is at a "turning point". | In his speech, Mr Cameron will say the country is at a "turning point". |
"The decisions we make now will live with us for decades to come. For many years we have been heading in the wrong direction," he will say. | "The decisions we make now will live with us for decades to come. For many years we have been heading in the wrong direction," he will say. |
"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. | "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 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 1% each year - only a quarter of what it was the decade before. | "It has become increasingly hostile to enterprise, with business investment in the past decade growing at around 1% 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 10 years associated in some way with public spending." | "It has become far too dependent on the public sector, with over half of all jobs created in the last 10 years associated in some way with public spending." |