May determined to '˜stick to the path' set out on steps of Downing Street as she promises '˜bold action' on workers' rights

Delivering her first major speech since last month’s disastrous snap poll, the Prime Minister reaffirmed her commitment to building a “fairer society” that will focus on the improving conditions for those who are “just about managing”.

She went on to acknowledge that political circumstances have changes since she entered Number 10, admitting that the result on June 8 “was not what I wanted”.

But while she urged opposition parties to work with her to “clarify and improve” policy on issues like employment and social justice, she made it clear that she believes that “path” she set out last summer “remains the right one”.

The speech, which was intended to mark the launch of the government’s flagship Taylor review, was widely regarded as a “relaunch” of Mrs May’s leadership following a bungled election campaign and a backlash over the official response to the Grenfell disaster. Although talk of an imminent leadership challenge has become less frenzied in recent days, there are still reports of opponents lining themselves up to oust the Prime Minister – potentially as early as the autumn.

Anyone expecting a drastic change in approach this morning would have been disappointed. However, there were two significant concessions from the Conservative leader, as she admitted that a disappointing election result had left her in a weakened position in the Commons.

“A year ago, I stood outside Downing Street for the first time as Prime Minister, and I set out the defining characteristics of the government I was determined to lead,” she said.

“Though the result of last month’s general election was not what I wanted, those defining beliefs remain; my commitment to change in Britain is undimmed.

“I am convinced that the path that I set out in my first speech outside Number 10, and upon which we have set ourselves as a government, remains the right one.

“It will lead to the stronger, fairer Britain that we need. It will deliver the change people want.”

Mrs May’s address as the Royal Society of the Arts also included a controversial appeal to rival political parties to “come forward with [their] own views and ideas” about how to tackle challenges as a country. The proposal has already been criticised by the Labour leadership, as well the Prime Minister’s own MPs.

But Mrs May added that she is prepared to take “bold action” and pursue her agenda with “renewed courage and vigour”. “This new context presents us... with a wider choice. At this critical time in our history, we can either be timid or we can be bold,” she said. “In everything we do, we will act with an unshakeable sense of purpose to build the better, fairer Britain which we all want to see.”

Among the most controversial recommendations from the review itself was call for a crackdown on the “cash-in-hand” economy.

The highly-anticipated report urged ministers to make it a requirement for certain self-employed workers to use digital payment methods - like apps or debit cards - in order to recoup some of the estimated £6.2 billion of tax lost each year through “cash-in-hand” transactions.

The study – carried out by the former advisor to Tony Blair, Matthew Taylor – also recommended a review of the minimum wage and rights to fixed hours contracts for so-called gig workers.

Speaking at the launch, Mr Taylor condemned a “one-sided flexibility” in the modern economy where employers “seek to transfer all risk” on to the shoulder of employees.