01/10/2013 08:47 BST

US Government Shutdown Is A 'Warning To Britain', Says David Cameron

The US government shutdown is a "warning to Britain" and reinforces the need for the coalition government's austerity measures, says David Cameron.

The American government is in paralysis this morning after rebels in Congress failed to pass the budget, with Republican wranglings over Obamacare.

"It is a reminder to all of us that we that we need to have properly planned public expenditure systems, properly planned tax, properly planned arrangements for getting our deficit down," Cameron said at Tory conference in Manchester.


Janette Dunder of Alexandria, Va., protests outside the Capitol building

"I know some people want to get away from the subject of deficit reduction and sorting our economy out and turning it around.

"But I think we will see lots of reminders over the coming months, like what is happening in America, that it is absolutely vital that we grip it."

Cameron said the Coalition had made "very difficult decisions".

"I think we can now say to the British people that the economy is turning the corner," he said.

"We have not solved Labour's debt crisis but we are on the way."

More than 700,000 US government workers face unpaid leave after a midnight deadline passed despite a last-ditch bid for an agreement by President Barack Obama.

Republicans in the House of Representatives have made delaying Obama's healthcare reforms a condition for passing the budget.

It is the US government's first partial shutdown in 17 years.