The Government is doing everything it can to drive growth in the UK economy, the Prime Minister said.
David Cameron said the Government planned to invest in the “industries of the future” such as aerospace, pharmaceuticals and green energy while at the same time encouraging growth beyond the South East to balance the economy.
He said the coalition’s “tough fiscal action” to cut the budget deficit did not mean the Government could not have a strategy to promote growth.
The Government wanted to reform planning laws to make it easier for entrepreneurs to expand and “lay out the red carpet” for start-up businesses, he said.
Speaking to business leaders in Manchester, Mr Cameron added that it was necessary to tax spending with the VAT increase as part of a plan to share the burden with public sector cuts.
He said: “Make no mistake – this Government is doing everything we possibly can to drive growth and make the next decade the most dynamic and entrepreneurial in our history.”
Mr Cameron insisted the Government “was getting behind business” by cutting corporation tax and ensuring regulation was limited.
He said: “The international evidence is clear: with tax rises taking a quarter of the strain and spending cuts three-quarters, we are striking the balance that is fair and good for growth. None of this is easy. But be in no doubt: balancing the books over this Parliament is absolutely essential to restoring confidence in our economy – and that is why we are sticking to this path.
“The second thing you need is a strategy for growth that goes beyond just sorting out the mess of the public finances – and that’s exactly what this Government has.
“In the end it’s not us in Whitehall who will create growth, but you in your offices, your shops and your factories. But you need some very basic things from us to help create wealth and jobs.”