What you call austerity is what I might call efficiency.

There are some people who seem to think that the way you reduce the cost of living in this country is for the state to spend more and more taxpayers' money. It is as if somehow you measure the compassion of the government by the amount of other people's money it can spend.

2012 has been an extraordinary year for our country. We cheered our Queen to the rafters with the Jubilee, showed the world what we're made of by staging the most spectacular Olympic and Paralympic Games ever and - let's not forget - punched way above our weight in the medals table.

An EU without Britain, without 1 of Europe's strongest powers, a country which in many ways invented the single market, and which brings real heft to Europe's influence on the world stage which plays by the rules and which is a force for liberal economic reform would be a very different kind of European Union.

Cap the well, yes, clear up the mess, yes, make compensation, yes absolutely. But would it be right to have legislation that independently targets BP rather than other companies? I don't think that would be right.

The next Prime Minister walking through that door will be me or Labour Party leader Ed Miliband, you can choose an economy that grows, that creates jobs, that generates the money to ensure a properly funded and improving National Health Service ... and a government that will cut taxes for 30 million hard-working people ... or you can choose the economic chaos of Ed Miliband's Britain.

We spend billions of pounds on welfare, yet millions are trapped on welfare. It's not worth their while going into work.