Bernard Ingham: Our vital fight for the future of Britain: what David Cameron should say today

At a time when everything seems to change with bewildering speed, I am here today addressing you as Prime Minister because one thing does not change: the need for the Conservatives to clean up after a Labour government.

This time the consequences of their mismanagement are horrendous. Spending soared in their latter years to 1970s crisis levels. The result is a budget deficit this year of 156bn.

It cannot go on and our Liberal Democrat associates in the coalition immediately recognised this. I pay due tribute to the statesmanship of Nick Clegg and his colleagues.

Not even Labour believes there is a painless way to restore our national finances, though they would try to fudge it. As always, they live for today's expediency, not for tomorrow's generation.

We are now approaching the reckoning. It gives my Cabinet colleagues and I no pleasure in having to impose cuts in government spending of around 83bn over this Parliament – some 30bn more than Labour's more responsible elements had proposed.

Unfortunately, these cuts are necessary in view of Labour's irresponsible profligacy if we are to make sure we can keep Britain afloat, avoid paying more dead money than necessary in interest and restore Britain's economic strength. You cannot build a strong, confident nation on mountains of debt.

Every responsible individual knows this. The only argument is how fast the mess should be sorted out. This is a matter of judgment, taking all factors into account. The Chancellor will shortly set out that detailed judgment. I want to recognise today his steadfastness of purpose in pursuing the national interest.

At the same time, I should acknowledge that some cuts would be necessary, even if our indebtedness were sustainable. Labour allowed public sector indulgence to get out of control. We would have had to get a grip on that in any case.

This brings me to the preposterous claim by our opponents that we Conservatives are against public spending in principle. It is utter nonsense – and always was so.

We believe that the State should be strong to do what only it can do – protect the realm, the currency, the weak and preserve law and order.

The real issue is how do we strike a healthy balance between public and private sectors. We do not believe that it is healthy for the public sector to be taking more than 45 per cent of national income. The private sector must be liberated to create the jobs and wealth that make a vibrant, confident nation.

That means we have a lot to do, while we are getting our public finances in order, to change things. I am proud to say that the coalition has done more reforming in five months than Labour did in 13 monumentally wasted years.

Let us make no mistake, we shall be judged as a coalition by how we handle the economy. But let there be no mistake either: our ambition is far greater than that.

The evidence for that is to be found in our determination to have Armed Forces fit and equipped to meet the likely threats to our security in the 21st century, not the Cold War of the 20th century, and to align our foreign and defence policies so that we present a coherent face to the world.

In our determination to make work more profitable than a wasted life on benefits.

In our determination to fashion an education system focused on delivering a proper start in life for all, not just the bright who must nonetheless be stretched to realise their potential.

In our determination to equip the nation with a far more efficient NHS so that we routinely celebrate its achievements rather than moan about its shortcomings.

In our determination to end the tyranny of regulation, red tape and fusspottery that provides the media with a daily stream of incredible nonsense.

In our determination to replace a virtually open door on immigration with effective controls that ensure the nation can cope with those it admits.

And in our determination to build a Big Society in which its citizens act on their recognition that it is what they do as individuals that makes the difference.

In short, our aim as a coalition is to restore Britain's finances and rebalance the country in favour of honest, hard-working and enterprising individuals who go the extra mile for us all.