On the one hand we have got to ask, are there some areas of universal benefits that are no longer affordable? But on the other hand let us look at the issue of dependency where we have trapped people in poverty through the extent of welfare that they have.

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.

I want to be the voice of change and hope. I want to confront the big challenges this country faces.

I don't just want a better deal for Britain. I want a better deal for Europe too. So I speak as British prime minister with a positive vision for the future of the European Union. A future in which Britain wants, and should want, to play a committed and active part.

Warm congratulations to my friend Barack Obama. Look forward to continuing to work together.

Over the longer term, the institutions and powers of the EU will continue to expand and certain policymaking powers, heretofore vested in the member states, will be delegated or transferred to, or pooled and shared with EU institutions. As a result, the sovereignty of the member states will increasingly be eroded.

The economies in Europe that will prosper, are those that are the greenest and the most energy efficient