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| Cameron 'will transform economy' | |
| (about 2 hours later) | |
| David Cameron is outlining plans to "transform" the economy in his first major speech as prime minister. | |
| Mr Cameron, speaking at an event in Yorkshire, will claim the economy has been heading in the wrong direction under Labour for years. | |
| He also said the economy should be rebalanced 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". | 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 taxes on the profits of second home and other asset sales more than double to 40% or 50% - as a tax on the middle classes. | Some of his own senior Tory MPs have attacked the planned rise on non-business CGT - which could see taxes on the profits of second home and other asset sales more than double to 40% or 50% - as a tax on the middle classes. |
| 'Be calm' | '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." | 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." | 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 | 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. | 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." | 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 stressed the need to cut the £156bn deficit and get people back into work. | |
| Spending cuts | Spending cuts |
| He said that his government intended 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. | Work and Pensions Secretary Iain Duncan Smith has said Britain's welfare system is "trapping" poor people in poverty. |
| Mr Cameron argued 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 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 said the country was 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 said. | |
| "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." |