David Cameron has set out the Government's strategy for economic growth with a promise to "transform our economy" and make the coming decade the most entrepreneurial and dynamic in Britain's history.

In his first major speech since becoming Prime Minister, Mr Cameron said his administration's first priority was to "re-open Britain for business" and promised that Government would not be a "bystander" but would actively promote enterprise.

Warning that the UK stood at a "turning point" after years of heading in the wrong direction, the Prime Minister pledged to revive the country's fortunes by cutting the deficit, liberalising markets, keeping taxes low, slashing red tape and supporting enterprise.

He said he would rebalance an economy which had become too reliant on a few sectors, such as financial services, and a few regions, particularly London and the South East.

And he promised to reform the financial sector by "getting to grips with the bonus culture" and making the banks serve the real economy.

After being bailed out with billions of taxpayers' money, he said it was time for banks to "repay the favour" by getting credit flowing to businesses.