David Cameron: Britain Needs Moral Capitalism Based on 'Something for Something'

This is because they create a "direct link" between "effort and reward", he claimed.

"The fundamental basis of the market is the idea of something for something - an idea we need to encourage, not condemn."

"Popular capitalism" means "genuine opportunities for people to participate and benefit" in the free market.

This is encouraged by the government's education reforms argues Cameron, who said the government's academies and free schools programme will raise attainment and quality in schools.

Cameron's government is under fire for consistently poor growth figures and rising unemployment, as latest figures show the number of unemployed people in the UK at a 17-year high.

"Here in Britain, it's clear that this is an active government with its sleeves rolled up, doing everything possible to get the economy moving," he insisted.

Labour Made a 'Faustian Pact' with Bankers

Attacking the previous Labour government for its relationship with the City, Cameron accused them of making a "Faustian pact" with the financial industry.

"[Labour] encouraged a debt-crazed economy because it needed to pay for spiralling welfare costs and a top-down, interventionist state," he said.