David Cameron today set out plans to reinvigorate the country's economy by promoting private enterprise and cutting taxes as he pledged to "re-open Britain for business".
In the first major speech of his premiership, the Prime Minister said the UK must re-balance its economy in favour of private enterprise and reverse the over-dependence on state spending characteristic of the previous Labour regime.
But Cameron's vow to jump-start the economy by keeping taxes low and promoting savings and investment comes amid disquiet within his party over plans to hike capital gains tax (CGT).
Acknowledging tensions surrounding the controversial plan to increase CGT - a key concession to the Liberal Democrats in coalition negotiations - Cameron said people "need to calm down a bit".
And in a sign he might bend to party pressure and not go as far as raising CGT in line with income - something hinted at in the Queen's speech - he said people "need to wait for the Budget".
He also said the Budget will outline plans to tackle the bulk of the country's deficit over five years and described the gaping hole in public finances as the manifestation of economic mistakes.
Cameron went on to underline his commitment to make banks lend more to small businesses in return for being bailed out by the taxpayer and also pledged to get to grips with the bonus culture.
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected