Help us to drive UK's growth says Cameron

Speaking to an audience of business leaders at a conference in London, David Cameron said he planned to create a "new economic dynamism" where companies have the confidence to invest.

After unveiling cuts last week which may cost half a million public sector jobs, Mr Cameron said the Government will help drive growth by backing industries where Britain has competitive advantage and helping new industries flourish.

Mr Cameron also unveiled a new national infrastructure plan which he said will help Britain keep pace with the rest of the world through better roads, rail and telecoms.

The plan, which will "completely update and modernise our infrastructure", will see the Government invest more than 30bn in transport projects over the next four years, and unlock a total 200bn of investment in Britain's infrastructure.

The coalition Government last week unveiled spending cuts totalling 81bn over four years to help clear a record budget deficit of 11 per cent of GDP.

Mr Cameron said with businesses' help, he planned to make the years ahead "the most entrepreneurial and dynamic in our country's history".

He told the Confederation of British Industry (CBI)'s annual conference: "British businesses are rebuilding their balance sheets because they have relatively strong profit and loss accounts.

"If we are to get back to strong growth, these profits need to turn into productive investment."

Mr Cameron revealed plans to invest 200m in a network of technology and innovation centres. He cited the University of Sheffield's Advanced Manufacturing Research Centre, based in Orgreave, South Yorkshire, which works with aerospace giants Boeing and Rolls-Royce.

"These centres will be great for research, great for business – and they're going to put Britain back at the top table for innovation," he said.

Investment in the centres will be made over the next four years.

Mr Cameron also hinted at possible changes to his planned immigration cap, which has been criticised by some businesses for making it hard to recruit foreign talent.

He told the conference: "As we control our borders and bring

immigration to a manageable level, we will not impede you from

attracting the best talent from around the world."

However, new Labour leader Ed Miliband accused the Government of taking an unnecessary risk with the economy.

"I do fear that the path the Government is pursuing is a gamble with growth and jobs," he said.

Business Secretary Vince Cable told the conference corporate Britain should return to a more long-term approach. He said growth must not imitate mistakes of the past, where "superficial economic prosperity" is based on booming property prices.

He said banks should invest for the long-term, and create a banking system that offers a much broader choice for businesses.

"The model of finance that brought us to this point was disastrously short-term," he said.

He urged company executives to "return to planet Earth" on pay rises, and said a planned overhaul of rules on corporate governance should look at executive pay.

The probe, entitled A long-term focus for corporate Britain, will also look at takeovers, which he said are too often driven by "short-term financial incentives".

It follows anger over a controversial 11.6bn takeover of Cadbury by US rival Kraft Foods. Mr Cable also urged banks not to engage in a "self-indulgent" round of bonus payments in the New Year.