Cameron outlines economic growth plans

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The prime minister has said the government is doing "everything it possibly can" to drive growth in the UK economy.

David Cameron was setting out plans to promote economic growth during a visit to the North West of England today.

He said the government plans to invest in the "industries of the future", including aerospace, pharmaceuticals and green energy while at the same time encouraging growth beyond the South East to balance the economy.

The coalition's "tough fiscal action" to cut the budget deficit did not mean the government could not have a strategy to promote growth, he said.

In a speech to business leaders in Manchester, Cameron said the government wanted to reform planning laws to make it easier for entrepreneurs to expand and "lay out the red carpet" for start-up businesses.

He said it was necessary to tax spending with the VAT increase as part of a plan to share the burden with public sector cuts.

"Make no mistake - this government is doing everything we possibly can to drive growth and make the next decade the most dynamic and entrepreneurial in our history," Cameron said.

The prime minister added: "If you don't have a plan to balance the books, you have no confidence. And if you have no confidence, you have no growth."

He also told the audience in Manchester that there must be more emphasis on the regions and less on London, and that local people and "powerful mayors" would drive this change.

The Conservative leader is expected to visit Oldham East and Saddleworth to support the Conservative candidate Kashif Ali.

This morning, Cameron visited the Wirral accompanied by Lord Heseltine, the newly appointed chairman of the independent advisory panel of the Regional Growth Fund.

The prime minister and Lord Heseltine began their visit by touring a £4.5bn regeneration development, joined by outgoing Tesco chief executive Sir Terry Leahy.

Cameron addressed Leahy and other business leaders who will be involved with the new Local Enterprise Partnerships.