Cameron defends employment reforms

In a speech to business leaders the Prime Minister will say Britain needs to move away from its “lopsided” economy dependent on debt and financial services.

Instead the UK needs a “massive boost” to enterprise, entrepreneurship and business creation to make it “one of the best places to do business on the planet”.

The Government is introducing changes to work laws that include charging fees for employment tribunals and extending the qualification period for the right to claim unfair dismissal from 12 months to two years.

Mr Cameron will tell the CBI’s annual conference in London: “Fears about the immediate future are real.

“Paralysis in the eurozone is causing alarm in the markets and having a chilling effect on economies in many countries - including our own.

“When the nightly news is about rising interest rates in Europe and uncertainty about the future, it is not surprising that that affects business and consumer confidence.

“But people don’t want explanations they want answers.

“I am absolutely clear about the right answer for the UK economy.

“It can be summed up in one sentence, we need to deal with our debts and go for growth.

“Those things aren’t alternatives, they are essential companions.

“We will not get one without the other.

“But that is not enough.

“Everyone agrees now that in the past Britain’s economy had become lopsided - too dependent on debt, consumption and financial services.

“Well, we are putting that right. We need a different kind of economy and a different kind of growth.

“If we are to build a new model of growth, we need to give a massive boost to enterprise, entrepreneurship and business creation.

“Put simply Britain must become one of the best places to do business on the planet.

“People who ask ‘what do radical deregulation and reforming employment law have to do with the immediate priority of getting growth?’ miss the point.

“The answer is simple: If we want a new economy and a new type of growth we have to act to make it possible.”