Britain could make her own way in the world, outside the EU, if we chose to do so. So could any other Member State. But the question we will have to ask ourselves is this: is that the very best future for our country? We will have to weigh carefully where our true national interest lies.

I have no time for those who say there is no way Scotland could go it alone. I know first-hand the contribution Scotland and Scots make to Britain's success - so for me there's no question about whether Scotland could be an independent nation.

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.

I know that the United Kingdom is sometimes seen as an argumentative and rather strong-minded member of the family of European nations. And it's true that our geography has shaped our psychology. We have the character of an island nation - independent, forthright, passionate in defence of our sovereignty.

No treaty should be ratified without consulting the British people in a referendum.

Britain is characterised not just by its independence but, above all, by its openness. We have always been a country that reaches out. That turns its face to the world.

But we will say something else. That for far too long in this country, people who can work, people who are able to work, and people who choose not to work: you cannot go on claiming welfare like you are now.