PRESS ASSOCIATION -- David Cameron has hinted at Cabinet wrangling over the scrapping of red tape to encourage economic growth.

Addressing an audience of business leaders at a Downing Street reception, the Prime Minister assured them the Government is "determined to tear down the barriers getting in your way".

But he said: "There are many people sitting around the Cabinet table saying we've got to keep this regulation or that regulation."

The Government as a whole however is fully supportive of enterprise, he promised. There is, though, no fiscal or monetary stimulus it can provide to achieve the strong growth the British economy "desperately needs", he said. "All that remains for Government to do is to try and do everything we can to encourage business to grow and expand," he said.
To this end, the coalition has cut the rate of corporation tax and is "determined" to reform the planning system and cut red tape, he told them.

But expansion on its own is not enough, he suggested. What is needed now is the "right sort of growth", and this means a rebalancing of the economy, he argued.

Economic growth in recent years has been concentrated in just a few industries, such as finance and property, he said.
The country now needs to see more growth in other areas, such as manufacturing, aerospace and technology - and this, he added, is already starting to happen.

"I think we're beginning to see a rebalancing of the British economy, which is badly needed," he said.