Cameron in recession risk warning

5 October 2011 Last updated at 10:49 ET

By Brian Wheeler Political reporter, BBC News, in Manchester

The threat of global recession is as serious as it was in 2008, Prime Minister David Cameron has warned.

But he urged Britain to stick with his deficit reduction plan and not to become “paralysed by gloom and fear”.

His speech to the Conservative Party conference in Manchester comes as UK economic growth was downgraded and amid the worsening eurozone crisis.

Mr Cameron said the UK had been written off before and urged the country to “show the world some fight”.

The speech was re-written at a late stage to remove a call for households to pay off credit card debts amid Downing Street fears Mr Cameron would appear out-of-touch with ordinary voters.

‘Slowly, but surely’

During the 50-minute address, he told party activists that “nobody wants false optimism” about the state of the economy and acknowledged it was an “anxious” time for many people, with rising prices, job losses and a shortage of affordable housing.

“As we meet here in Manchester, the threat to the world economy – and to Britain – is as serious today as it was in 2008 when world recession loomed.

“The eurozone is in crisis, the French and German economies have slowed to a standstill; even mighty America is being questioned about her debts,” he said.

But M Cameron rejected Labour calls for a slowdown in deficit reduction and to introduce short-term tax cuts to boost growth, telling party members: “Our plan is right and our plan will work.

“I know can’t see it or feel it yet. But think of it like this: the new economy we’re building, it’s like building a house. The most important part is the part can’t see – the foundations that make it stable.

“Slowly, but surely, we’re laying the foundations for a better future. But this is the crucial point: it will only work if we stick with it.”

Mr Cameron struck a self-consciously upbeat tone during much of the speech as he invoked what he called “the British spirit”, saying that “we don’t have to accept that success in this country belongs to others”.

And he repeatedly stressed that only he could provide the leadership the country needs in “difficult times” – as demonstrated, he said, by his decision to go to war in Libya.

‘Can-do optimism’

He rejected claims that the government was doing nothing to boost growth, saying the only way to deal with Britain’s “debt crisis” was to pay off its debts.

He pointed to planning reforms and cutting red tape as examples of how the government was boosting growth – but vowed not to repeat the mistakes of the past on bank regulation when building the “new” economy.

Mr Cameron said it would be down to the British people – and British industry – to make growth happen: “Let’s reject the pessimism. Let’s bring on the can-do optimism. Let’s summon the energy and the appetite to fight for a better future for our country, Great Britain.”

And he had a tough message for critics of controversial planning reforms: “To those who just oppose everything we’re doing, my message is this: Take r arguments down to the job centre. We’ve got to get Britain back to work.”

There were few new policies – apart from an announcement that 90,000 ng people would take part in the third year of the National Citizen Service and plans to increase the adoption rate for children in care.

And he got a round of applause for announcing a consultation on legalising gay marriage.

His jibe that his party does not “boo” its former leaders – a reference to the heckling of Tony Blair’s name at Labour’s conference last week – went down very well in the hall.

His vow to keep Britain out of the euro and avoid eurozone bailouts also got good rounds of applause – as did his promise never let Labour anywhere near the British economy again.

He ended with a direct message to the nation: “We have the people, we have the ideas and now we have a government that’s freeing those people, backing those ideas.

“So let’s see an optimistic future. Let’s show the world some fight. Let’s pull together, work together. And together lead Britain to better days.”

— ’re ’s , . : A ‘Malign Intellectual Subculture’ – George Monbiot Smears Chomsky, Herman, Peterson, Pilger And Media Lens.