Cameron Defiant On Employment Law Reform

David Cameron has insisted that Britain needs to deregulate business and has rejected criticism of his reforms to employment law.

Speaking to the CBI's annual conference , the Prime Minister said the country must move away from a "lopsided" economy dependent on debt, consumption and financial services.

He urged business leader to help Britain become "one of the best places to do business on the planet."

Mr Cameron said: "Paralysis in the Eurozone is causing alarm in the markets and having a chilling effect on economies in many countries - including our own.

"When the nightly news is about rising interest rates in Europe and uncertainty about the future, it is not surprising that that affects business and consumer confidence."

"Everyone agrees now that in the past Britain's economy had become lopsided - too dependent on debt, consumption and financial services.

"Well, we are putting that right. We need a different kind of economy and a different kind of growth."

The Prime Minister went on to challenge critics of planned reforms to employment law, which will include charging fees for employment tribunals and an extension of the right to claim unfair dismissal from one to two years.

He said: "People who ask 'what do radical deregulation and reforming employment law have to do with the immediate priority of getting growth?' miss the point.

"The answer is simple- if we want a new economy and a new type of growth we have to act to make it possible."

He outlined proposals to tackle the shortage of affordable homes , and pointed out that lending to small and medium-sized enterprises (SMEs) has increased under Project Merlin, the agreement between the Government and the nation's biggest banks.

He also emphasised the importance of exporting to emerging economies.

"Today we export more to the Republic of Ireland than we do to Brazil, Russia, India and China combined.

"That tells us two things - one is that we're very reliant on European markets so what happens in Europe matters to us and that's why we want to get a resolution to the eurozone crisis.

"But it also tells us there is a massive opportunity if we get out and sell more to these very fast growing and very large economies of the future."

Currently only 20% of British SMEs export but the CBI says if the nation could increase this to 25% to match the European Union, it would provide a £20bn boost to the economy by 2020.