Conference Special Daily Politics

Afternoon. Welcome to this final Daily Politics special of the

2011AD conference season. We are live from the Conservative Party

Conference. Last year the Prime Minister told this conference the

British economy was "Out of the danger zone." This year with the

economy stagnant and the eurozone crisis heading towards a

potentially disastrous climax, Britain is back this the danger

zone. David Cameron will attempt to reassure the faithful and convince

the wider public that he has the leadership and the vision to steer

Britain through the grimmest economic outlook for the country

since the IMF bailed us out in the mid-1970s.

We will bring you all the build-up to this important speech, which we

expect to begin in about half an hour. We will bring you live and

uninterrupted coverage. At least we hope uninterrupted. Jo's in

Manchester too. As you can see, people are queuing to get into the

conference hall. I'll be outside, getting reactions to the Prime

Minister's speech. We will look back over David Cameron's year,

with former Tory leadership hopeful Michael Portillo.

Cameron's recipe for gaining power was to move the Conservatives to

the soft-centre of British politics, hugging the National Health Service

and embracing climate change. In office, he's moved away from the

middle-ground. That does not mean he'll lose the next general

election. And they toil over the final text,

but as we have discovered today, things don't always go to plan. I

will talk to a former speech writer who thinks the speech should be

If he gets his way we'll all be out of a way. How dare he suggest we

scrap the speech writer's speech. The party faithful here are waiting

to get in. It has been a low-key conference for them. They hope the

Prime Minister will fire them up and send them away with a spring in

their step. Difficult economic times is the backdrop to his speech,

as we await the Prime Minister's speech. He may go through a final,

final draft we have the warmest act. Benedict Brogan from the Telegraph

and Paul Waugh from Politics Home. I come to you, Ben, because the

Telegraph has flashed on it. You were briefed by Cameron's people

that he told us we would have to pay off our credit cards and that

was the best way to help the British economy. By this morning,

that was not the brief. What happened? After our splash emerged

and others led with it, you could tell there were anxious faces on

the Downing Street team. They were looking worried. That is not the

message they intended to get out. That is the problem with these pre-

briefing speeches, you never know which lines journalists will find

interesting. This is what happens at party conferences. In the end

the authorised version of the speech is the one he delivers from

the stage. I have not seen the rowing back in recent times as big

as this. It's hard for them to get out of. All parties do, they say

the media misunderstands. They printed out chunks of the speech

and gave it to us. They did. The key line was, that means households,

all of us are paying off... Should be paying off the credit card and

store bills. They have amended it to say that households are paying

off credit card and store card bills. Although there's no plan B

for the economy there is a plan B to change the script to make sure

he's not as out of touch as that would sound. The embarrassment for

them, and the spin doctors are running all over the place, some

tried to get into this studio when we were live on air. The

embarrassment is at a time of grim economic news a Government should

be presenting a picture of competence and conviction and a

safe pair of hands? The difficulty for David Cameron is he wants to

sound optimistic this afternoon while all around us and beyond

Manchester the world seems to be falling apart, at least

economically. That is hardly reassuring for him. The difficulty

is he has an economic challenge. On one hand he's telling people they

should be paying down their credit card bills. The message has been

we've got too much debt. At the same time the economists are

standing up say, hang on if everybody pays, we have the economy.

My impression is it is a low-key affair so far. They are in

reasonable spirits but seem apprehensive. What does he need to

do to them today? He needs to fire them up. He is a competent Speaker,

unlike Ed Miliband and Nick Clegg, he has several gears when he goes

through a speech. He can change the pace of it. He will fire them up

with this attempt to bridge the reality of the economic downturn

with the optimism of the future. It is that bridge between the realism

and optimism, he's got to convey to punters at home. He famously said

when Leader of the Opposition, "Let sunshine win the day." As I read

through my newspapers and blogs and the Tweets this morning, it was

just bad news after bad news. The recession was deeper than we

thought, growth turned out to be lower than we thought in the second

quarter of this year. Italy has defaulted, not defaulted, Italy has

had a downgrade a second time. The Greeks are going on strike. Even

Tescos of all things has made a loss for the first, or a drop in

sales for the first time in 20 years. That's a difficulty.

wonders how much optimism he can prevent when around him it looks

pessimistic. The Treasury hold the view the more serious it gets the

more it focuses the minds of the French and Germans on resolving the

Greek crisis. That requires nerves of steels, which circumstances

outside make difficult. Circumstances bond his control. The

markets take a further tumble because the eurozone leaders are

yet to show something called leadership. The Belgium bank goes

belly-up. Everything becomes worse news. There's nothing a British

Prime Minister, or very little a British Prime Minister can do.

is the difficulty. That is his opportunity today. He can say, look

I'm not veering off a debt reduction plan, we are a safe port

in the storm. He's going to say, you can't feel it yet, you can't

even really see it yet, but our policy is working and will be

working. In other words, all this rhetoric about the ship coming out

of the storm will be heavily promoted today. I am not sure

whether the public will see eye-to- eye with that. Should he, would he,

will he mention Ed Miliband? Interesting. I think he may be

tempted to ignore him. If I was him I was would nor him. He may have a

few cat jokes. Not more cat jokes. I understand there may be a cat

reference in one of the songs after he walks off the stage. Can we

agree he will not say this year Britain is out of the danger zone?

Today it is difficult to make such a statement. Thank you.

Getting our coverage of the David Cameron conference speech of 2011,

to the party faithful, it is coming up now, in froblly just over 0

minutes. He -- probably just over 20 minutes. He is probably running

late. Party leaders generally do. Some things are left behind in

Westminster. There are some treasured possessions we bring with

us. Andrew packs his cuddly toys, his iPad and I have my special

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we will pick the winner on tomorrow's Daily Politics programme.

With me I've two Conservative MPs who I know are busy as we speak.

Bernard Jenkins and Sajid Javid. Starting you, have the big issues

been addressed? It has been -- there is something unreal about

this conference. There is a serious mood. Nobody has wanted to

undermine David Cameron. There is a serious atmosphere because we know

there is a big crisis outside. The drinks flow at the conference and

the band plays, but there is a sense that the depth is beginning

to slope a bit because we are facing challenges in the eurozone

crisis. Do you think they have been properly addressed by the

leadership? Well, there is a sense that the leadership are trying to

push the consequences of this into the future. We've an economic

problem. We've a competitiveness problem now. If the eurozone are

going to make very big changes to the way the European Union operates,

that is the moment we need to address the regulation that is

piling on from Europe and I don't think we can push this forward.

This is happening now. I'm afraid this crisis is not going to fit

into a coalition programme that waits until 2015, which seems to be

what William Hague was saying this morning. Do you agree with how that

is characterised that now is the time to act. I am not sure what

Bernard suggests the Government does. Should there be something to

reement -- pre-empt Greece from defaulting? Bernard is right in the

sense it has been a very mature conference. It has been focused on

by George Osborne and by the Prime Minister in his speech, probably in

a moment, there is no alternative to plan A. We've heard that. That

has been their strategy. What about what Bernard Jenkins is saying?

Should something be down now in terms of action? I am not sure

there is much more we can do. The euro is not a problem of our doing.

We are glad the Government has changed 18 months ago or we could

have been in a similar situation to Italy or Greece ourselves. What can

be done? What I'm saying is that the eurozone crisis is leading to a

fundamental change in the nature of the European Union. There is talk

of a treaty of the 17, and they are going to do a treaty of the Euro-

states, on their own, to do fiscal union, not requiring the signature

of any other member-state. It could take years? The problem is these

changes will be made very quickly f they are made. They profoundly

change the European Union. And ministers themselves are saying

this is going to change the way the European Union operates. Is that a

time for a referendum? No. I'm saying what the Government will

need to address is how to protect British national interests in this

eurozone, in the centre of the Euro-. Have you any -- in the senl

centre of the eurozone. Have you any suggestions for them? If the

Liberal Democrats paralyse them on this, we say, go ahead, make our

day, if you want to bring the Government down on this, this is

vital for our competitiveness to be able to get control. When we talk

about the Liberal Democrats, we also have to recognise that they

did not win a majority. We needed to form a coalition. There was no

other way around that. The Liberal Democrats have done the country a

huge service in coming to that coalition and addressing the bigish

issue of the day which was the debt and the deficit. Bernard would

agree with me, had we not got that under control our situation would

be like some of our European partners. They could be the block,

if you like on any negotiation, opportunity that comes up? I don't

think a block is a right word for it. We are in a koolgsz. The

situation is what it -- coalition. The situation is what it is. If an

opportunity arises for Britain to enter into a negotiation, of course

we should take advantage of that. We should keep our pencil sharpened.

Right here and now, what we need to assure the markets is we have a

strategy that works. The moment George Osborne sat down after his

speech, our rating was reaffirmed. We saw what happened in Italy. They

got downgraded by S and P and Moody's today. What about the Human

Rights Act? Nick Clegg made it clear, it is here to stay. What do

you think of that? On that issue Nick Clegg is wrong. We made it

clear in our manifesto that we would like to see a British Bill of

Rights which balances rights and responsibilities. That is very

important. What should the Government do to counter that from

Nick Clegg, if that is the right thing to do in your view?

The British Bill of Rights, you don't get the feeling it will

There is a sense that the absolutely overbearing weight of EU

law and human rights law is paralysing the government. We have

put this in our select committee report, no one has challenged it.

There is a real problem about making government work in this

over-regulated environment, and getting the economy competitive.

Are we going to be told we have to wait until 2015 before we can do

anything about this? I thank that is a problem. I think the Liberal

Democrats should be challenged on this -- I think that is a problem.

If they want to bring down the coalition... They haven't really

said that, they are very tied him. Does your concern reflect the Tory

backbenchers? -- tied in. coalition agreement was written 18

months ago, events have overtaken the coalition agreement. We cannot

go on living in the world as it was then, we have to tackle the

challenges now, or the whole government will become more

unpopular. How are the backbenchers feeling? Most backbenchers would

agree with what George Osborne... That is fine but are they happy? Do

they feel they are getting the government they want? By and large,

people accept that because of the coalition, there are naturally

going to be constraints. They are not happy, really? We accept that.

I would have loved to have seen an out right Conservative victory, we

didn't get it so we have frustrations like the Human Rights

Act. If we can find ways to deal with that within the constraints of

the coalition, such as what Theresa May said yesterday, that is the way

to go for it. This is a Midge Ure conversation, there is not going to

be some massive rebellion instantly -- this is a mature conversation.

We have seen it going on in the conference will between Ken Clarke

and Theresa May. I think we have got to have these conversations

because we have to address the national interest. The coalition

has to address the national interest. Somebody said to me,

hasn't it been a dull and boring confidence -- conference? I said,

if you mean there hasn't been infighting and briefings against

each other, then it has been. could have been handing out this

leaflet. Are you worried? They would say that, wouldn't they.

suppose so. You're not worried they are going off to UKIP. At salute

will not. Pick a badge. I love deficit reduction -- absolutely not.

He had first pick. I love the 50p tax rate? As a former banker, I

love banking reform. Wear them with pride. Thank you very much.

Thanks, de Gaulle is filling up, there are still plenty of seats in

what the Americans call the bleachers -- the hall is filling up.

If not a huge crowd. The bottom of the hall is full, but lots of spare

seats at the back. It is a big centre in Manchester kids, but

Labour filled it be conference in Liverpool last week. We will see

whether the Tories do the same. If you are sitting in your hotel room

in Manchester watching this, part of the delegation, you can come,

plenty of time. We have been told that the Prime Minister will now

not be on his feet before 4:40pm. But we will still be here the

moment he does -- to 40 pm. Graham Brady is the chairman of the 1922

Committee of backbench Conservative MPs, a kind of shop steward for the

backbenchers. I am a trade union leader. You look and sound like one,

I am not surprised. Why haven't your members been allowed to spend

more time discussing Europe this week? When the crisis over the euro

has been heading for climax? heard some of the members of the

1922 committee discussing just that. Why hasn't the conference been

doing it? I think conference programmes are over managed. Not a

little over manage, they are totally managed. There is no scope

for any measure of rebellion at this conference. I don't think it

is a matter of rebellion but I would like to see more debate in

party conferences, I would like to see us get back to balloted motions.

To be dangerous, isn't it? Sometimes you have to live

dangerously. You would like to go back to the days when we had

debates, motions, speakers for and against, and at the end, people

could vote. And although the conference, unlike Labour, doesn't

bind the Tory leadership, it would give you a good indication of where

the heart of the party was. I think debate is a good thing. Especially

so in these very difficult times we are facing. We are in

unprecedentedly bad economic circumstances. I think it is a good

thing that we hear different views about how we work our way out of it.

Why did you get rid of the debates? I didn't. Not you personally, the

party. Both the Labour Party and Conservative Party have been moving

to more managed conferences, and it is clearly because the party

hierarchies are concerned about what you and your colleagues do

when there is some genuine open debate. Which means it is hard for

you to complain when we don't cover the events going on in the all

enough, because frankly, what is going on in the ball these days is

either irrelevant, boring or both. Some of it is very exciting and

very interesting. As a general rule and principle, more debate in

politics, treating the public as intelligent people who can watch

disagreements and discussions between politicians without

automatically thinking there is some great split in a party. I

think we could do more of that. What is the mood among Conservative

backbenchers as regards their attitude towards the government,

and the influence that the Lib Dems have on this government? I think

there is a degree of acceptance of something which is inevitable.

There was a decision which was taken, a series of decisions taken

by the electorate. We ended up with a certain parliamentary arithmetic,

it wasn't possible to form a majority government on our own. We

would prefer to have done so. We are nonetheless, managing to

function as a government, with a degree of cohesion, especially

about the key issue of reducing the deficit, and working towards the

point where we will start to play down the national debt. Is there a

mood on the Conservative backbenches to be more robust on

Europe? I think the European picture is moving so rapidly and

changing so rapidly, it is very difficult to discern where people

are. This is one of the features of this conference, that people inside

this conference have been looking out at events, looking at the

markets, looking at what is going on in Greece, perhaps just as much

as the outside has been wanting to look in at what we are doing here.

Is there a mood for the government to be more robust on tax cuts?

think there is a question of reality. We are in this extremely

difficult position, we have to get to the position where we are

spending less... I know what the position is, we have heard it

endlessly. What I am asking for is the mood on the backbenches, what

is their attitude? I think there is a strong view in the Conservative

Party, and in the government, that if you can achieve a lower tax,

less regulated economy, it is going to be more efficient economy, which

will generate more wealth and jobs for the British people. That is

something we want to get to. Getting from where we are now to

that position is a very serious challenge. Do you want the

government to move more quickly on the backbenches will continue at

the current pace? I think what the government is starting to talk more

about, which is extremely welcome, is tackling the regulatory burden.

It is adding to regulations. We are hearing this week from David

Cameron and George Osborne, a real commitment to tackling the

regulatory burden, and that is something which is going to be

vital in the coming years. That is the other thing we can do. We have

had massive monetary stimulus and fiscal stimulus over the years, and

we are where we are. We can start to really drive down the cost on

business. What is the point of a trade union leader that has

absolutely no disagreement with the bosses? They used to say the secret

weapon of the Conservative Party was loyal to. The secret weapon of

the 1922 Committee is that generally, the conversations I have

with the Prime Minister are better conducted in private. What do you

tell the Prime Minister in private that you're not telling us on air?

That would defeat the object, wouldn't it? A very good attempt.

You're not going to tell us? course I am not going to Italy

about the private conversations with David Cameron. -- not going to

It causes considerable uncertainty, for a number of different parts of

the country. We are still out the review from Wales and Scotland. It

is a pretty radical set of changes. In some places, it creates very

profound differences. We can see David Cameron the coming out of the

hotel, here in Manchester. It is the only hotel which is behind what

we call the ring of steel in this party conferences, the security

perimeter, which means once you get through that, you can walk between

the hotel and conference centre. We are in this massive conference

centre, the Prime Minister and his wife are heading towards it. It

used to be an old Victorian railway station. The platforms and the

rails have long gone and it is a very state-of- the-art conference

centre. There is something of a piazza, the Prime Minister makes

his way here and is about to head into the Manchester convention

centre. What do you want to hear from the Prime Minister this

afternoon? What we will hear from the Prime

Minister... I really want to know what you want to hear from him.

What I want to hear will be what we pretty much will here, a realistic

assessment of the massive challenges that face the country,

face the government, faced the global economy, and that is very

important, I think people are starting to take that on board.

Then I want to see a really sharp focus on what we can do. There are

things we can't easily do, to improve the economic situation. The

things we can do, not easily, not simply, is to start driving down

the cost burden on business, and I think that is vital. Do you welcome

chance lost on's remarks, has that maybe this -- Chancellor Osborne's

remarks that the increasing has maybe gone too far. I think George

Osborne was right to make sure we would not fix a carbon price higher

than our competitors. That is the kind of thinking we need to move to.

The principal preoccupation of the government is growth. We need to

make life better and easier for British businesses. What we are

hearing is that the Conservative press office, which has uncovered

itself in glory in the past 24 hours, is saying the Prime Minister

might not be speaking until about six minutes to three, which would

be very late indeed. I have no idea why it has to be that late. It has

been in the calendar for almost a year. Although there has been last-

minute drafting and refinancing of some of his remarks about credit

cards, it does not explain why he is half-an-hour late. Maybe he will

be more on time than before, than we are briefed. You might have to

fight George Osborne for a seat with his Boundary Commission change,

is that right? No, it is not right. -- with this Boundary Commission

changed. You must never believe what you read in the press. After

the wrong steel on credit cards, you are right for they don't cross

the boundary between Greater Manchester... Is your seat safe?

would never call a seat safe. mean from the boundary changes.

There will be a sensible seat under the proposals. What is it like

running the 1922 Committee? Is it like herding cats? I thought you

weren't going to mention cats. It is fair to say that Conservative

Members of Parliament are independent people and they do not

always have an entirely uniform view. Thank you for joining us. We

are going to move on. It has been quite a 12 months for David Cameron.

A global economic crisis, riots on the streets of English cities, an

uprising in the Arab world which led to the first military adventure

of his premiership. Here is our rookie reporter, Michael Portillo,

David Cameron twos to the Conservative Party Conference with

feathers in his -- goes to the Conservative Party Conference with

feathers in his hat. The local election results were good and he's

been vindicated on Libya. All that counts for very little. There's

only one thing that really matters - the economy, stupid! Today is the

day when Britain steps back from the brink, when we confront the

bills from a decade of debt. On day one of the coalition, the

Government's commitment to bring down the deficit reassured the

markets. Unlike America, Britain still has a triple-A credit rating.

Unlike Portugal, Ireland, Greece and Spain, our Government can still

borrow cheap. The economy has stalled. The

Chancellor of the Exchequer cannot simply blame the weather. We're not

going to be blown off course. The weather had a huge effect.

George Osborne adopted a plan B the markets would wobble. Living

standards are sliding. Without economic growth, the deficit won't

shrink. It's difficult to see what he'll have to offer the voters at

the next election for all their pain.

This summer saw the worst bout of rioting for a generation. Alastair

Campbell recognised he needed to -- David Cameron recognised he needed

to sound tough. There are pockets of our society which are not just

broken, but frankly sick. If he sounded tough at home he was also

tough with Libya. Who could have imagined just 1 months ago that a

British Prime Minister would -- 12 months ago that a British Prime

Minister would permit forces so soon after Iraq and Afghanistan.

There is a clear and unequivocal basis for the deployment of

military forces and assets. David Cameron's judgment does

sometimes fail him. He was wrong- footed over the hacking scandal and

his decision to hire as his communications director the former

News of the World editor, Andy Coulson. With 20/20 hind site and

all that has followed I would not have offered him the job and I

suspect he would not have taken it. You don't make decisions in

hindsight, you make them in the present. You live and you learn,

and believe you me, I have learnt. A Prime Minister has had to wheel

and deal to meet the competing demands of Liberal Democrats and

Tories within the coalition. The Government sometimes appears to be

spinning around rather than moving forward. Its response to the Arab

Spring has been confused. The defence cuts are a mess. In an

ominous echo of the past, Euro- sceptic Tory backbenchers threaten

revolt and put strain on the coalition. The Liberal Democrats

have been responsible for some of the most dramatic U-turns.

propose to take the opportunity of a natural break in the passage of

the bill to pause, to listen and to engage. The last 12 months have

been really testing. David Cameron always looks effortlessly Prime

Ministerial. If Ed Miliband continues to lead

Labour, and continues to be disliked and thought incredible,

then David Cameron's fitness for office may prove decisive.

Cameron's recipe to gain power was to move the Conservatives to the

soft-centre of British politics, hugging the NHS and embracing

climate change. In office, he's moved away from the middle-ground.

That doesn't mean he'll lose the next general election. Margaret

Thatcher was highly unpopular. Many of her decisions were hated, but

she never lost a general election. In that, as in so many other ways,

she may be David Cameron's model. Michael Portillo there, looking at

David Cameron's year. It is a little empty out here in the hall

because everybody has gone inside, except these three delegates we

have kept behind until the speech starts. With us Kirsty Roberts, and

Roche and Mr Decisionson. We've had people -- and Mr DixoN. People have

said it is stage-managed. I am not sure if there is the party faithful

and the same response as in the past. We are now in Government and

it is a different situation. Everybody is looking forward the

future. I feel there are far more younger women being attracted

towards the party. Despite the fact that the leadership admits they

have had a problem with women voters and the poll would indicate

that as well. We are doing our best to address that. It is very

important to have a cross- representation in any party in

order to be able to represent the community as a whole. Obviously,

trying tory tract younger women into politics is -- trying to

attract younger women into politics is the thing. I am a councillor and

have a young family. It is important that people like us, with

our own reflections and we bring those to politics, which is, I

think, what some of my colleagues are experiencing. On that basis,

Kirsty, you are an IT contractor. You are out there in the world of

business, and the message that they are sending out, it is about the

future. Is the future bleak, or is it sunny uplands? I think what

we're going to see, Jo, is a message of, we need some hope.

Everyone knows we are in a tough situation at the moment. I don't

think anyone is dispuelting that. - - disputing that. The messages we

are getting through from the Government are certainly they are

taking the hard choices. They... If we had not had an emergency Budget,

for instance coming in last year, we were in serious danger of going

the same way as Greece, Ireland and some of these other economies. So,

it's not comfortable for anyone. Frankly, the Government are looking

after us. They are looking after our future now. OK, David you left

the party in 1997, when Tony Blair came into Government. You didn't go

to Labour, but you left the Conservative Party. You came back

when David Cameron come in 2005. Has he done a good job? Has he

stuck to the sort of manifesto you wanted? I think he's done a

fantastic job. I seriously mean that. I've been in the party in and

out for 40 years. I think the party is in better heart than I have

known it. Why? It's the energy. it younger? It is younger. There

are fewer here. You can see empty seats in that auditorium. That is

not very encouraging, is it? people who are here are younger and

more energy yet tick than ever. I am very impressed with the people I

have met here. On that basis, if they are younger, are they

representing, as you said, across the society? Is everybody being

made to feel welcome in the Conservative Party? We heard

earlier from one of the sketchwriters that some of the more

traditional Tories are not here in the numbers they used to be. Has

the party changed? All parties will change just as society changes.

Political parties have to reflect society. Of course there are going

to be, as you have rightly said, younger delegates here, possibly

for the first time, people who have come to politics through a

difficult previous Government and want to sea change. They are here

in order to participate rather than perhaps purely vote. They want to

engage with the party. They want to take part. It's through that that

you will sea change and the whole of society will be represented.

What about people struggling with their finances? I am sure you all

have experience, yeert yourselves or other people. How dif -- either

yourselves or other people? How difficult is it out there? From a

personal perspective and talking to my constituents the biggest concern

people have is planning for the future. Financial planning?

Absolutely. Are they spending? would like to hear something in

David Cameron's speech today to tell us what he's going to do.

People are very worried about pensions and the general market.

But I, as I said previously, I think there's a recognition,

certainly from people I speak to that decisions have had to be taken

and they were tough decisions. I think the Government, this

Government, has the strength and the courage to take those decisions.

With the Liberal Democrats, of course. Are you pleased with the

coalition? Yes, very pleased. Because they are having a good

influence? That is right. My concern right now is housing. I am

a landlord. I see house from the inside. I think the Government,

aided by the Liberal Democrats, will do something to help first-

time buyers, they have to. The market is frozen at the moment.

That's what I'm looking for. What about building houses? They have

made a play about the planning laws. Do you agree that it is being

geared more towards economic development than it is towards

saving the countryside? That has been said. The fact is with a

frozen housing market, it doesn't matter how many they propose to

build. They won't do it because there are no sales at the moment.

And that would be key for you? Absolutely. You are a doctor, what

did you think about the NHS reforms? Do you think they are in

better shape now because of what the Liberal Democrats say they

actually did in terms of a pause, do you support them or think they

should have gone quicker, faster and, you know, in a way that the

Tories initially wanted? I am speaking as an individual rather

than as a doctor. Clinical medicine and politics are two separate

things. Because there has been a pause, I think the NHS needs to

progress. If we don't amove forward.... Do you support GP

commissioning? There'll be lots of things which could benefit from

that. There'll be a step by step process. Possibly there will be

teething troubles in certain areas. Certainly I think the Government

have worked with doctors in order to try and get the very best

outcomes. So many did not support it. What about some of the

patients? Do you think they feel reassured by these savings which

have to be made to the budget? Savings will be essential. They are

not arbitrary. Unfortunately we have a very, very difficult

financial situation, and the NHS is one of the most expensive calls

upon finances. Basically I think people are more aware and patients

are more aware that money has to come from somewhere. I think,

although some people are afraid that commissioning might, this

might be a completely new area of commissioning, others feel they may

get a better service because they have a personal relationship with

their GPs and this could be a very positive outcome.

Thank you very much. We will see you after the speech, if there is

time for reaction, depending on how long it goes on for. Back to you,

Andrew. Thanks, Jo. We are waiting to know

when the speech will start. We're told it might start around 2.50pm,

which is later than the original start time we were given. I would

like to make a point and say they are probably drafting it after all

the changes. I don't think they are. I have a copy of the speech here. I

could get things underway by reading it out myself, but that is

a way to get your P45. Nick Robinson is with us. He and I will

talk for Britain.... In alternative words. This week.... You have

broken the embargo. They are watching videos in there. They are

getting the audience warmed up in time for the speech. Slightly

surprised to see a lot of empty seats at the back of this hall?

am surprised. Normally there are people who come especially for this

day, even if they have not been here for the whole of the

conference. Normally they ensure it is full. It is not. It is a sign

again of a conference, not just this, all of them actually, it

feels like the idea of conferences is almost dying. They are so

carefully stage-managed. They so work to ensure that controversy

happens in the Fringe and in the bars and not here in front of the

television cameras and microphones. It is so expensive for many people

to come to city centres, as besides a seaside resort there are fewer

and fewer activists and more and more people, whose profession,

whether lobbyists or business people come here. The chairman of

the 1922 Committee. He wanted debate and then a vote. That is why

Graham Brady is chairman of the backbench committee and not in Her

Majesty's Government. It is that view that will convince David

Cameron he should not become a minister. No party leadership wants

to wash its dirty linen in public. Of course there's a consequence to

that. If it takes out the activists' involvement, the danger

of course is the leadership don't hear the warnings of their own

grass roots who are not merely meant to be sent out to knock on

doors. They are supposed to be in touch with what the country is

thinking. What will the message be from the speech today? The message

he wants to have is not this mess they have got into, over whether

people should pay off their credit cards or not. The message he wants

is, yes, it is bleak out there. I think we'll get a starker warning

about how bleak it the economically. We have heard him talking about

staring down the barrel of a gun. We heard about him talking about

the danger posed be I the world economy. He is likely to make a

direction comparison with the banking crisis in 2008, in other

words a problem not just for Britain but of a global recession.

Labour will leap on that if that is what he does. They have talked

about creating a "safe haven" through their policies. Now they

are talking about the problem of that world recession, in which

Britain might be sucked in. But the other half of his message is meant

to be one, not so much of optimism, but a belief, if you like, we can,

the country can, I can get you The grim economic backdrop, which

has got grimmer, means that there are some things that in more normal

times would have been in this speech, that are not in this speech

now. All won't be prominent. Just a few weeks ago, I think if we'd had

sat here and said, what do you think David Cameron would do, you

would say, it has got to be about the riots. It is surely going to be

about what happened on the streets of Manchester, of Britain, I should

so the streets of England before the Scots correct me. It saves me a

lot of e-mails! And yet, I am told there will be not much on it. There

will be words about the riots, but it hasn't dominated any of the

conferences in the way that all political leaders thought it would.

You might have thought the conflict in Libya would be the dominant

theme... Which he would regard as a success. A great triumph. It will

be mentioned, but it won't dominate. The growing economic storm has

taken over from everything. The sense that politicians have, that

the public think they are not in touch with their concerns, that the

economy is not being run in a way which works for them... Which means,

interestingly, we have heard already this week, things that

sound very similar to Ed Miliband boss -- et Ed Miliband's and

previous stories. Their -- Tories. The hearing the concern that people

don't get it, that the rules work in a way that you get something for

nothing rather than something for nothing -- rather than something

for something. It is going to be uncharted territory for British

politics. This coalition has an agreement, which was done on the

basis that the worst of the recession and the financial

meltdown was over, and this is our rebuilding plan, to take us through

to the election. That agreement could well turn out, in large areas,

to be irrelevant, if we are just heading into another financial

meltdown. It doesn't give you the prescription. In a sense, let's

think of the parallel with its 2008. Alistair Darling could not say,

what does it say on a manifesto about this? They literally had to

make it up as they went along. You have to gather your experts in a

room and say, what do we do now? The advantage, if there was one, of

the crisis in 2008, many of the officials around the Prime Minister

and Chancellor were the officials who were around Gordon Brown and

Alistair Darling, so they have some knowledge about what to do about a

banking crisis. Last night, the Ten O'Clock News lead on this crisis in

a French and Belgian bank, a vast problem for that bank. But the

Chancellor was about this conference, about the hotel,

looking... Relaxed isn't the right word, but not panicky. It's when I

suggested to him, why not, people know what to do. In other words,

there is at least some sort of guide. There is some sort of

blueprint. That is what happened with the Belgian bank? Absolutely.

If it is a wider economic crisis, there is no script at all. The

coalition would have to gather and work out what it will do, and what

the Chancellor may want them to do, and whether the Liberal Democrats

will sign up to it. The other thing I have noticed, they did have a

plan whereby they thought that the political cycle and economic cycle

would go in tandem. That they got elected in 2010, they were planning

for a full five-year parliament, they would get rid of the pain in

the first years, then the growth would come back, living standards

would start to rise, there maybe a bit of a windfall if we sell back

the banks, and we are off to the races in 2015. I think we are

ripping that up now. Latest figures still show the economy growing...

Growing less. If you now take the last nine months. And you add them

together, you have zero growth. My point was, he will say, don't talk

us into a recession, we have to be careful that we did say it has

happened yet. It is deeply grim out there but we don't know the

consequences for world economic growth. You are right, the politics

was assumed to be, rather like Margaret Thatcher's first term,

very tough, the lady is not for turning was the big speech in 1981.

She contradicted the criticism of 364 economists who wrote to the

papers, then she got re-elected. Some people say Labour was divided,

some people say there was the Falklands factor. Another thing,

people's living standards were improving. Interest rates were

plummeting. She went on to win that election. The Tories who grew up in

that era, they thought, it is going to be grim, but we will get out of

it. In a nutshell, the fear is, we thought we had a lot of time but if

it is as bad and going to get worse, because of events in Europe, we

might be running out of time, even at this early stage. I think that

is right, although I don't think I'm being too generous to them to

say, if we are in a world economic recession, their thirst for will be,

what on earth do we do -- their first thought. The whole political

terms of trade change, it does not automatically fall into Labour's

lap if we end up in a real crisis. Arguably, the opposite. Governments

often say, and there was some truth for Gordon Brown in 2008-2009, that

in a moment of crisis, the country looks for leadership, it looks to

its existing leaders, and is tempted -- tempted to hold on to

those for fear of something worse for that period. It doesn't

necessarily help Labour at that stage. The key is whether people

think the Labour Party's analysis that the government contributed to

this crisis is right, and whether they think the government gains any

credit or could have "a UN something worse. Were speculating

about the political consequences of something in four years' time, but

the Prime Minister does not know what is going out and in four days'

time. The big difference between -- with 2008, Britain was at the

centre of that storm. It was a banking crisis, big banks in London.

Gordon Brown had an advantage, he was the chair of the G20, and he

used it. He used it rather brilliantly. Even his critics would

argue that would delight his policies or not, his ability to

pull people together in that G20 conference in London was something

he did very well. David Cameron, in that sense, and George Osborne,

much more spectators. It is a crisis about the eurozone and not

the British banks. They can push and argue with their colleagues,

they can't actually act. The G20 that the Prime Minister will go to,

the equivalent of the one in London, is in Cannes in the beginning of

November and I think provided the markets don't cause some horror,

that will be a key date. Chancellor has said they have to

have their ducks in a row by them. Absolutely. What was striking last

night, you get this very bad economic news, crashing markets in

Britain and on Wall Street, then you get a European Commissioner

implying that a plan is being developed. Up pops Wall Street

again, it was too late for the British stock market, but Wall

Street bounced up again, as if, somebody is in charge, good. That

is how volatile markets are at the moment. And the economic backdrop

against it put -- against which people are having to make decisions.

They are showing a video about the Prime Minister going into hospitals

and so on, which I suspect is the final build-up. We had a lot of

young people on the stage, I guess that is to compensate for the fact

there are not a lot of young people in the audience. And I think he

will say his great passion is education. There are more young

people at this conference than they used to be at Tory conferences --

than that there used to be. It is quite a long speech, it could be up

to an hour. Why do they feel the need to speak for so long? I was

speaking to a speech writer last night. There are bits of the speech

that are not very important for people in the hall, sometimes not

important for journalists or a lot of the audience watching, but they

have a value. They are sending a message, I was told, to officials

in Whitehall, that the Prime Minister cares about this. Let's

take an example, the big society. If that phrase were not in this

speech, the message goes around that he doesn't care about it any

more. So you are in a meeting as an official, and they say, we don't

need to bother, it wasn't in the speech. They go through things and

say, we must have a section. It works diplomatically. If there are

parts of the world that a Prime Minister doesn't mention, sometimes

the diplomatic immunity will say, what is going on, we thought your

guide cared. There is a function, a bit like the state of the Union

address. You have to show, this is what I care about, these are my

priorities. To say, the boss said it matters, so it does. They are

still watching a video, we are still waiting for the Prime

Minister, I am puzzled as to why this should run it so late. I have

no idea. We can joke about the redrafting, but they got that...

was a word. It can't have taken that long. When we talk about

rewriting, it did not involve any rewriting, it took a decision. Did

they say, as they were, you guys have all gone mad, you are

reporting that we want people to pay off their credit cards and that

is not what we want. Or did they acknowledge that wasn't just a view

taken by the media, but a view resonating in large parts of the

country, and then saying, to show you that is not what we meant, we

are changing the word. They know they are going to take a hit, he

nobody likes changing words in politics, but they decided to. We

can't know whether some event has happened but he feels he needs to

refer to, or argue about. It is quite a good -- big change, from

I think he is unlikely to mention Ed Miliband. They always say the

speed should be prime-ministerial and trying to speak to the country,

-- the speech should be. But I think he feels he is in politically

a strong enough place to not have to Rafal -- return fire to the Lib

Dem press, nor attack Labour. His problem is convincing the country

he has got it. He understands the problem and he knows what to do

about it. Which in a sense is why the argument over the credit card

debt, a small storm in a teacup but indicative of the problem.

reason it matters so much, and they didn't understand this, was it

suggests that people are out of touch, they think credit cards can

be paid off, when they can't. last, and the Conservative

Conference... Just as well, I was about to ask you what your

favourite colour was! I was going to telly about my favourite

instrument! We don't need to, the Prime Minister has arrived on the

stage of the Prime Minister -- the Conservative Party Conference of

2011, taking the applause of this audience. It was quite a wait for

him as well. At least they had some videos to watch, you only had me

and Nick to listen to. Here is the This week in Manchester, this party

has shown the discipline, the unity and the purpose that is the mark of

a party of government. I am proud of my team, I am proud of our

members, I am proud to lead this party. But most are all, I am proud

of you. -- most of all. You have made this week the success I

believe it has been for our party and our country. People have very

clear instructions for this government. Lead us out of this

economic mess, do it in a way that is fair and right, and as you do it,

please build something worthwhile for us and our children. Clear

instructions, clear-cut objectives, and from me, a clear understanding

that in these difficult times, it is leadership we need. To get our

economy moving, to get our society working. And in a year, the

Olympics here, when the world will be watching us, to show everyone

what Great Britain remains. But first, I want to say something to

everyone in this hall. Thank you. Despite the predictions, you won

elections all over our country this may, so let us hear it for those

great campaigns that you fought and won.

And thank you for something else, in that AV referendum, you did

Britain a service, and you kicked that excuse for a voting system off

the political agenda for a generation. So thank you for that

too. APPLAUSE

And next year, let us make sure we beat Ken, we back Boris and we keep

London Conservative. APPLAUSE

But you're not just winners, you are doers. This summer, as before,

Conservatives went to Rwanda, to build classrooms, to help grow

businesses, social action, that is the spirit of the modern

Conservative Party. Here, at this conference, we've been recording

audio books for the blind. Now, I looked very carefully at the books

that my colleagues choose. George knew exactly what he wanted.

He went straipbgt for The -- straight for The Man Who Would Be

King. Boris missed out. He choose - The Joy Of Cycling. There was a

book I choose. I said, Ken, this is Crime and Punishment and I want you

to read it twice!" after yesterday we should have a group reading of

Mog, the Cat. If you read that book, you will remember that Mog helps

police catch the burglar, not keep him in the country.

APPLAUSE This is a party, and ours is a

country that never walks on by. Earlier this year, some people said

to me, Libya, that is not our concern. Don't start what you can't

finish. Some people even said to me, "Arab, they don't do democracy." If

we had stood aside this spring people in Benghazi would have been

massacred. Don't let anyone say that this wasn't in our national

interest. We remember what Gaddafi did. He

was the man who gave Semtex to the IRA. He was behind the shooting of

a London police officer. He was responsible for the bombing of a

skies over Lockerbie. I say, let us be proud of what we did to help the

Libyan people take back their country.

APPLAUSE In Afghanistan today, there are men

and women fighting for Britain, as brave -- bravely as any in our

country. They come from Wales, Scotland, Northern Ireland. They

have the equipment they need and we are on target to bring them home.

Theirs has been a campaign of incredible sacrifice. I know

everyone in this hall will want to send a message to everyone who

serves and has served, to those in uniform, in our armed services and

in our police. And for those not in uniform who keep us safe from

terrorism on our streets. We thank you, we salute you. We are proud of

what you do for our country. APPLAUSE

But leadership in the world is about moral strength as much as

about military might. A few months ago, I was in Nigeria, on a trade

mission. While I was there, I visited a vaccination clinic. It's

an experience I will never forget. It was very hot, basic, the lights

kept going on and off to. The rows of women cuddling their babies this

place was a God send. One of the nurses told me that if it wasn't

for British aid, many of those beautiful babies would be dead.

In four years' time, this country will have helped vaccinate more of

the world's poorest children than there are people in the whole of

England. Of course we will make sure your money goes to people who

need it most. We will do it in a way that is transparent and

accountable. I really believe, that in spite of all our difficulties,

this is the right thing to do. It is a mark of our country and our

people that we never turn our backs on the world's poorest. I believe

everyone in Britain can be proud of that fact.

APPLAUSE Leadership in tackling tyranny,

leadership in fighting poverty. When it came to that decision, to

help the Libyan people, there was something dispiriting about the

debate here in Britain. It wasn't that some people thought we

shouldn't do what we did, that is their right. That is a point of

view. It was that so many people actually

thought Britain couldn't do something like that any more. You

hear that kind of pessimism, about our economic future, our social

problems, our political system, that our best days are behind us

that we're on a path of certain decline. Well, I'm here to tell you

that simply isn't true. Of course, if we sit around and hope for the

best, the rest will leave us behind. If we fool ourselves that we can

grow our economy, mend our society, give our children the future we

want them to have, if we fool ourselvess that we can do these

things without effort, without correcting past mistakes, without

confronting vested interests and failed ideas, then no, we'll not

get anywhere. If we put in the effort. If we correct the mistakes

f we correct the vested interests and take on the failed ideas of the

past, then I know we can turn this ship around.

No-one wants false optimism. I will never pretend there are short-cuts

to success. Success will come with the right

ideas, the right approach, the right leadership. Leadership from

Government to set out the direction we must take and the choices we

must make, but leadership also from you.

The things that will deliver success are not politicians or

Government, it is the people of Britain and the spirit of Britain.

Some people say that to succeed in this world we need to be more like

India or China or Brazil. I say, we need to be more like us.

The real us. Hard-working, pioneering, creative,

optimistic, can-do. That is the spirit that has made this United

Kingdom what it is - a small country that does great things. One

of the most incredible success stories in the history of the world.

It's a spirit that I believe is alive and well today.

I see it in Tanya Sydney Roberts, the head teacher who started a free

school from scratch and it is four times over subscribed. What is her

ambition? To do it all over again. That is leadership. I see it in GPs

in Bexley who have taken control of their budgets. They have their

patients, some poorest in the country, free treatment in Harley

Street, on the NHS. That is leadership. I see it in all we saw

this summer. Dan Thomas, he watched the riots unfold on television. He

didn't sit there and think, "I'll just leave it for the council to

clear it up. "he got on the internet, he set out a call and

started a social movement. People picked up their brooms and re-

claimed the streets. The argument I want to make today is this -

leadership works. I know how tough things are.

I don't for one minute underestimate how worried people

feel, whether about making ends meet or the state of the world

economy. The truth is, right now, we need to be energised, not

paralysed by gloom and fear. Half the world is booming. Let's go and

sell to them. Many of our communities are thriefing. Let's

make the rest like them. There is so much great about our country. We

don't have to accept that success in this century automatically

belongs to others. We just have to remember the origin

of our achievements, the people of Britain taking a lead.

That is why much... APPLAUSE That is why so much of my

leadership is about unleashing your leadership.

Giving everyone who wants it the chance to seize the opportunity,

the support and above all, the freedom to get things done and

giving everyone who wants to believe it, the confidence that

working hard and taking responsibility will be rewarded,

not punished. Let us reject the pessimism.

Let us bring on the can-do optimism. Let us summon the energy and

appetite to fight for a better future for our country, Great

Britain. APPLAUSE

Now, of course, that starts with our economy.

As we meet here in Manchester, the threat to the world economy and to

Britain is as serious as in 2008, when world recession loomed. The

eurozone is in crisis. The French and the German economies

have slowed to a standstill. Even mighty America is questioned

about her debts. It is an anxious time.

Prices and bills keep going up. Petrol, electricity, the weekly

shop. On the news, it's job losses, cutbacks, closures. You think about

tuition fees, house prices, the cost of a deposit. You wonder how

our children are going to manage. Now, of course Government can help.

This one is. We've cut petrol duty. We've kept

the winter fuel allowance, cold weather payments. We have frozen

council tax this year. As George said on Monday, we'll freeze it all

over again next year too. APPLAUSE

But we need to tell the truth about the overall economic situation.

People understand that when the economy goes into recession, times

get tough. But normally after a while things

pick up. Strong growth returns. People get

back into work. This time, it's not like that.

People want to know why the good times are so long in coming. The

answer is straightforward, but uncomfortable. This wasn't a normal

recession, it was a debt crisis. It was caused by too much borrowing

by individuals, banks, businesses and most of all by Governments.

When you're in a debt crisis, some of the normal things that

Governments can do to deal with a normal recession, like borrowing to

cut taxes, or increasing spending - these things won't work because

they lead to more debt which would make the crisis worse. Why? Because

it takes risks of higher interest rates, less confidence and the

threat of even higher taxes in future. The only way out of a debt

crisis is to deal with your debts. That's why households are paying

down the credit card and the store card bills. It means banks getting

their books in order. It means Governments, Governments all over

the world, cutting spending and living within their means.

This coalition Government, Conservatives and Liberal Democrats,

Nick Clegg and I, we've led the way here in Britain.

Our plan is right. Our plan will work.

I know that you can't see it or feel it right now, but think of it

like this, the new economy we're building, it is like building a

house. The most important part is the part

you can't see. The foundations.

Slowly, but surely we are laying solid foundations for a stronger

future. The vital point is this; if you

don't stick with it, it won't work. There's something else... APPLAUSE

There's something else that we have to stick to, because we're not in

the euro, we can lay these foundations ourselves, on our own

terms, in our own way. So, let me say this, as long as I'm Prime

Minister, this country will never join the euro.

APPLAUSE And I won't let us be sucked into

endless bail outs of countries that are in the euro either. Yes, we are

members of the IMF and we have responsibilities there. When it

comes to any euro bail out mechanism, my approach is simple -

Labour got us into it and I am Of course, our Hall deficit-

reduction programme is really just one big bear out of the last

government -- Hall a deficit. -- one big bale out. We have been

subjected to a national apology Tour. Sorry for sucking up to

Gaddafi, for not regulating the banks probably for crushing civil

liberties, for failing to go green, for not building enough houses.

Sorry for the infighting that made it the most dysfunctional

government in the history of our country. But you know what, nothing.

Not a peep on the thing they really need to say sorry for. Wasting

billions and billions of your money. You know what the Shadow Chancellor,

Ed Balls, said last week? That Labour didn't spend any more money

than they had available. Hello? Ed, you spend �428 billion more than

you had available. And there is only one conclusion you can draw

from this. We must never, ever, let these people anyway India our

economy ever again. For faith -- let these people anywhere near or

our economy ever again. As before, it falls to asked to

clear up after a Labour government. -- it falls to ask. I have insisted

that we do it in a way that is fair. You can't cut the deficit the size

of ours without asking everyone to make a sacrifice, but those with

the most money are bearing the biggest burden. We have imposed a

permanent levy on the banks, we have raised taxes on people who

make their money overseas but to live here, and at the same time, we

have given will help to the poorest and most vulnerable. We are taking

it over a million of the lowest paid people out of tax or

altogether, and after the scandal of the 75p raised for pensions, we

are linking pensions to earnings so elderly people will be �10,000

better off in their retirement. Yes, this is a One nation deficit-

reduction plan from a one nation He and my friends, there is

something else that we, the Conservatives, have done. The

National Health Service is the most precious institution in our country.

The most precious institution to my family, to your family. At the last

election, it was Labour policy to cut the NHS. It was Liberal

Democrat policy to cut the NHS. It was our policy, Conservative policy,

to protect the NHS and spend more on it than this year, next year,

and the year after that, because we are the party of the NHS, and as

long as I am here, that is the way But real fairness, will fairness

isn't just about what the state spends. It is about the link

between what you put in and get out. As we debate what people get from

the state, let us remember how we generate the taxes in the first

place. So to the unions planning to strike over public sector pensions,

I say this. You have every right to protest, but our population is

ageing, our public sector pension system is unaffordable, the only

way to give public sector workers a decent, sustainable pension system,

which I want to, and to do right by the taxpayer, is to ask public

servants to work a little longer and pay a little more. That is fair.

What is not fair, what is not right, is going on strike and hitting the

very people that are helping to pay Dealing with our debts, that is

just line one, caused one of our plan for growth. We need jobs. We

are not going to get jobs by growing government, we need to grow

our businesses. So here is our growth plan. It is to do everything

we can to help businesses start to grow, to thrive and succeed. Where

that means backing off, cutting regulation, we will do that. Where

that means intervention and investment, we will intervene, we

will invest. Whatever it takes to help our businesses take on the

world, we will do it. The global economy has been transformed in

recent years. It used to take companies decades to become world

leaders. Now some of them do it in just a few years. When you step off

the plane in Delhi, or Shanghai, or Lagos, you can feel the energy, the

hunger, the drive to succeed. We need that here. There is too much,

frankly, can't do soggy mess around. We need to be a sharp, focused, can

do country. Let me say this. As we go for growth, the last thing I

want is to pump the old economy back up with a banking sector out

of control, manufacturing squeezed and prosperity confined to justify

parts of the country, and a few industries. Our plan is to build

something new, and to build something better. We can do it.

Look at what is happening in East London. Europe's financial capital

is now matched by Europe's technology capital. Facebook, Intel,

Google, Cisco, even Silicon Valley Bank. Our potential and investing

right here. The world's most famous digger, the JCB, made in

Staffordshire. Do you watch Formula 1? Ken does. Whether it is the

German Michael Schumacher, the Australian Mark Webber, what the

Brazilian Rubens Barrichello, they will have one thing in common. When

they get into that car, it is made This is the new economy we must

build, leading an advanced technology, Life Sciences,

engineering, creating, exporting. It is easy to talk about these

things, it is more difficult to deliver them. For a start, you will

not deliver it, I just dividing industries into saints and sinners.

That is not just an insult to the financial insurance companies, the

accountancy firms, the professional services that make us billions of

pounds and employ millions of people. It is just much too

simplistic. I have always argued, we need businesses to be more

socially responsible. But to get proper growth, to rebalance our

economy, we have got to put some important new pieces into place. We

have got to take action now to get credit flowing to the small

businesses that are the engine of our economy. We have got to ring-

fence the banks so that they fulfil their role of landing safely to the

real economy. We are setting up technology and innovation centres,

where scientists and academics can work with entrepreneurs to turn

brilliant inventions into successful products. We have

reformed taxation to encourage enterprise and investment in the

high-growth firms. But we are also going to have to take some

controversial decisions, and to challenge some vested interests.

When firms need to adapt quickly, to win orders, to win the contract,

we cannot go on with the rigid, outdated employment legislation of

the past. I know the critics will say, what about workers' rights? We

mustn't forget the important worker right or all, the right to have a

When in modern business you are quick or dead, it is hopeless that

our infrastructure lags so far behind Europe. That is why we need

to build a high-speed rail and we need to get the fastest broadband

network in Europe as well. When a balanced economy needs workers with

skills, we need to put an end to the old slobbery about vocational

education and training -- old snobbery. This government is

providing training for an extra 250,000 apprenticeships across this

Parliament, but we're not getting enough back from big business. So

here is a direct appeal. If you want skilled employees, we will

provide the funding, we will cut the red tape, but you have got to

show the leadership and give us the apprenticeships this country so

badly needs. Unlocking growth, rebalancing our

economy, it also requires change in Brussels. The EU is the biggest

single market in the world, it has got amazing potential, but it is

not working properly. Almost every day, I see. This new regulation

coming our way. A couple of weeks I came across this EU directive. Do

you know what it was about? Whether people with diabetes should be

allowed to drive. What an earth has this got to do with the single

market. Do you suppose anyone in China is thinking, I know what will

grow iconic, let's get those diabetics off the road. Europe has

got to wake up and the EU growth plan that I have published, that I

want to publish at every meeting, every council, every summer, that

is the alarm call that Russell needs -- Brussels needs. Our

businesses need the space to go -- grow, Mick literally our -

literally. It is hard to blame local people for imposing local

developments -- opposing local developments when we get so little

of the benefits. We are changing that. If a new manufacturing plant

is billed in your area, your council will keep the business

rates. -- built in your area. This is a low-cost plan for a localised

party. -- local list plan. People are worried about what this means

for consolation. I love our countryside and would never do

anything to put it at risk. But we have got to get the balance right.

The proportion of land in England that is currently built up his 9%.

Our - is 9%. There are businesses desperate to expand to thousands of

people but are stuck in the mud of are planning system. We are going

To those who oppose everything we do, my message is this. Take your

arguments down to the Jobcentre, because we are going to get Britain

back to work. This new economy we are building,

it must be an economy for everyone. You know the real tragedy of

Labour's economy? It is not just that it was unsustainable,

unbalanced, overwhelmed with dead, it is that it left so many people

behind. They talked a lot about opportunity, but they ripped the

ladders of opportunity away. We had an education system that left

hundreds of thousands on prepared for work. We had a welfare system

that trapped thousands in its dependency. We had an immigration

system that brought migrant workers to do the jobs we were not paying

those on welfare to do. We had a government, oh boy did we have a

government, that creamed the taxes off the boom to splurge back into

the benefits, redoubling the failure all over again. Labour, who

tell us they care so much about fairness and justice, who say they

want to hit the rich and help the poor, Labour gave us the casino

economy and the welfare society. Who is going to lift the poorest

up? Who is going to get our young people back to work? Who is going

to create a fairer society? Not you, the self-righteous Labour Party, it

will be asked, the Conservatives, who built the economy that works

for everyone and gives hope to everyone in our economy. -- in our

country. That must start with a good

education for everybody. It sounds so simple. Proper teaching, good

discipline, rigorous exams, but it is hard. It is hard, because our

education system has been effected by an ideology that instead of

insisting on every child's success, as too often made excuses for

failure. They say that poor kids Will in this community you can't

expect too much, you really must understand. I do understand. Oh,

yes, I understand. But believe me, I am disgusted by the idea that we

should aim for any less for a child from a poor background and a rich

APPLAUSE I have contempt for the notion that we should accept narrow

horizons for a black child than a white one. It is the age-old irony

of the liberal left. They practise oppression and they call it

equality. So we... APPLAUSE So we are fighting back.

Something really massive is happening in our country. There is

now a irrefruitable proof that with the right schools, right freedoms

and leadership, we can transform the education of the most deprived

children. You heard yesterday from that inspirational student from

Burlington Danes Academy in Hammersmith.

An InterCity school, deprived area, almost half of the children on free

school meals. But this year five- quarters got five good gstgss,

including English and -- gsts, including English and maths. That

is better than schools in Cambridgeshire, Sussex got last

year. Some of the most affluent counties in our country. Why?

Because the head teacher, her staff, the parents, they all rose up and

said, "We are as good as anyone. Our children can achieve anything."

Leadership works and we'll make it work in all of our schools.

APPLAUSE We're backing more head teachers to turn more schools into

academies. We want charities, entrepreneurs to come into our

education system and set up the new free schools too. Change is really

underway. For the first time in a long time, the numbers studying

those core and vital subjects, history, geography are going up.

Exams will be marked on grammar. Teachers will be able to search

bags, for weapons, alcohol, anything. It is a long road back to

rigour, but my friends, we are well on our way.

APPLAUSE And here is something else we're

going to do, in Britain today we do have a group of schools that are

utterly intolerant of failure, where 90% of pupils get five good

GCSEs, yes, private schools. You've heard me talk about social

responsibility. I want to see private schools start academies and

sponsor akam mis in the state system. Wellington does it Dulwich

does it, others can do. The apartheid between private and state

education is one of the biggest wasted opportunities in our country

today. Let it be us, the Conservative Party, who helped to

tear it down. APPLAUSE

Rigour back in learning, standards back in schools, teachers back in

control - the Conservatives are back in Government.

APPLAUSE An economy that works for everyone

means sorting out welfare and immigration as well. Welfare began

as a lifeline. For too many it has become a way of life. Generation

after generation, in the cycle of dependency and we are determined to

break it. Part of our answer is controlling immigration.

So, we put a cap on the numbers of none EU immigrants allowed to come

and work in our country. We must not lock out talent. I want the

best and brightest, entrepreneurs, students and scientists from around

the world to get the red-carpet treatment and they will. The fake

marriages, people arriving for a month and staying for year, the

criminals who use the Human Rights Act to try and stay in the country,

we are clamping down on each and every one of them.

APPLAUSE We've got to get some sense back

into our labour market and get British people back into work.

Now, for years, you have been conned by Governments.

To keep the unemployment figures down, they parked as many people as

possible on to the sick - 2.5 million, to be exact. Not

officially unemployed, but claiming welfare, no real questions asked.

Today, we're asking those questions. It turns out that of the 1.3

million people who have put in a claim for the new sickness benefit

in recent years, one million are either able to work, or stop their

claim before their medical assessment had been completed.

Under Labour, they got something for nothing.

With us, they will only get something if they give something.

If they are prepared to work, we're going to help them and I mean

really help them. If you've been out of work and on benefits for

five years, a quick session down the Jobcentre, some help with your

CV, that is not going to cut it. That will not help you. You need to

get your self-esteem and confidence back. You need training and skills,

intensive support. Previous Governments will never willing to

make a proper commitment. Were never willing to sign the necessary

cheque to get this done. Never willing to break the Treasury rules

to make it happen. We have. We have invested now so we don't pay later.

We are going to spend up to �14,000 on individual people, just to get

them trained and back into work. I know that is a lot of money, but

it is worth it. Let it be us, let it be this Government, let it be

the Conservatives that finally build an economy where no-one gets

left behind. APPLAUSE

And for most people, for most people, that means also a home of

their own. Not just any old home, but a decent

one, light and spacious. Rooms for the kids to play in. The percentage

of British people who own their own home is going down. Unless you get

help from your parents, do you know the average age of a first-time

buyer in our country today? It is Now, you hear some people say, well,

why can't we be like in Europe where everyone rents? There is

nothing to do, we don't have the money. I disagree. The failure of

the housing market is bound newspaper the debt crisis. Because

the lenders won't lend, the builders won't build and the buyers

can't buy, we are going to sort this out. We're going to bring back

the right buy your council house. We'll use that money to build new

homes. It was Macmillan who made us the home owning democracy. Margaret

Thatcher what gave us the right to buy. Let us inspire a new Tory

housing revolution. APPLAUSE

And while I'm on the subject of those great Conservative figures,

let me say this, I'm incredibly fortunate in leading this party

that I've had the full-throated, incredible support from all our

previous leaders. Michael Howard, Sir John Major and of course

Margaret Thatcher. And you know what, in this party we don't boo

our leaders, we are proud of what they've done fosh our party and

what they've -- for our party and what they've done for our country.

A few months ago, we were all shocked by the scenes on our

streets, in London and in other parts of the country. Perhaps

almost the most shocking thing is that people weren't that surprised.

There was no great call for a public inquiry to find out what has

gone wrong. Instead, what I think you could hear was the angry

insistent, overwhelming cry of a country shouting to its leaders. We

know, we know high this happened. We know what has gone wrong.

We know that if the system keeps fudging the difference between

right and wrong we'll never improve behaviour. We know as long as the

police go around with their hand behind their back we will never

make our streets truly safe. More than anything, we know that if

parents don't meet their responsibilities, their kids will

get out of control. What people were saying to us is,

"Yes, we know what has gone wrong and we want you to put it right."

One of the things that people want is speedy justice.

After the riots, those responsible were put straight into court and

tough sentences were quickly handed out.

I've made it clear to the police, the prosecution services, the

Ministry of Justice, the Attorney- General f we can do that then, let

us do it all the time, year in, year out.

APPLAUSE We all know that the problems go

deeper. That is why my driving mission in

politics is to build that bigger, stronger society.

It starts with families. I want to make this the most

family-friendly Government the country has ever seen.

More childcare, more health visitors, more relationship support,

more help with parenting. For the 120,000 families that are the most

troubled, and frankly cause the most trouble, a commitment to turn

their lives around by the end of this Parliament.

Today, I can announce this; another new focus.

There are 65,000 children in care. Do you know how many children there

are in care under the age of one? 3,660.

To you know how many children under the age of one are adopted in our

country last year? 60. This may not seem like the biggest

issue facing our country, but it is the biggest issue for these

children. How can we have let this happen? We have got people flying

all over the world to adopt babies, while the care system at home

agonises about placing black children with white families. With

the right values w the right effort, let us be the ones that end this

scandal and help these, the most vulnerable children of all.

But for me, leadership on families also means speaking out on marriage.

Marriage is not just a piece of paper, it pulls people together

through the ebb and flow of life. It says powerful things about what

we value. So, yes, we will recognise marriage and the tax

system. While also doing something else.

I stood before a Conservative conference once and I said it

shouldn't matter whether commitment was between a man and a woman or a

man and a man, or a woman and a woman.

You applauded me. Five years on, we are consulting on

legalising gay marriage. To anyone who has reservations, I say this,

yes, it's about equality, but it's also about something else -

commitment. Conservatives believe in the ties that bind us, that

society is stronger when we make vows to each other and we support

each other. So, I don't support gay marriage in spite of being a

Conservative, I support gay marriage because I am a

Conservative. We value community spirit and

social action too. We see it every day in our own lives, in our own

communities. It is one of the great things about Britain. Do you know

what? After the last five years of Labour Government the number of

people volunteering went down. Last year the decline was halted. Now

the proportion of people saying they belong strongly to their

neighbourhood is the highest for a decade.

If you're cynical, go to Wythenshawe, a few miles from here.

It used to be ravaged by crime and drugs and graffiti. Local people

opened a community hall, a gym. They got the kids off the street.

They kicked out the drug habit and the drug dealers. Of course

Government cannot legislate for this, but we can support the

leadership that makes it happen. That is why we're giving

neighbourhoods new powers to take over the running of playgrounds,

pubs and parks. It is why we're making it easier for people to give

their time and money to good causes. Why we have elected mayors. Now

we're drawing up plans to open up our public services and give more

power to people. But one of the biggest things holding people back

from playing a part in biging a bigger society is health and safety.

I was told recently about a school that wanted to buy a set of high-

lighter pens. With the pens came a warning. Not

so fast, make sure you comply with the control of substances hazardous

of health regulations 2002. Make sure you include plenty of fresh

air and hand and eye protection. You try highlighting with all of

that! This wasn't how a great nation was built. Britannia didn't

rule the waves with her armbands on. We're scaling it back. The CBR

checks, we're cutting them back. At last, let's bring some common sense

Building stronger communities, that is why we introduced National

Citizen Service. You saw it for yourself at the start of this

afternoon's session. One of the people who took part this year,

Owen Carter, wrote to me and said, this has changed my perspective of

life. You can do anything if you work hard and have a supportive

team around you. You can do anything. That is the spirit I am

talking about. That is why we are tripling the scale of National

Citizen Service, that is how we will build our big society, and

that his leadership. Next year, we are going to welcome the world for

the Olympics and the Queen's Diamond Jubilee. This two event say

a lot about Britain. Tradition and modernity, all in one. Today, we

can choose to be a country that is back on its feet and striding

forward. Paying down our debt and earning a living, getting people

off welfare and into work, breaking new ground in education with

excellence for Everyone and not a privileged few. We can be a country

where people look back on their life and say, I have worked hard,

raised a family, I am part of a community and all along it was

worth my while. We are too far from that today, but we can get there.

It is not complicated but it is not easy either, because nothing

worthwhile is easily won. But we have been told we were finished

before. They told us when we lost an empire, we couldn't find a role,

but we took on communism, we help bring down the Berlin Wall. They

called our economy the sick man of Europe but we turned this country

into a beacon of enterprise. No, Britain never had the biggest

population, the largest land mass, the richest resources, but we had

the spirit. It is not the size of the dog in the fight, it is the