New PM pledges 'freedom, fairness and responsibility'

Following five days of party political haggling David Cameron became Prime Minister of Britain’s first coalition government for 65 years.

And standing beside his pregnant wife Samantha outside Number 10, the new Premier made clear that the country faces “hard and difficult work” to fix the economy and mend its broken society.

“I want us to build an economy that rewards work, I want us to build a society with stronger families and stronger communities and I want a political system that people can trust and look up to once again,” he said.

In a historic move, Mr Cameron is expected to announce a new Cabinet featuring six Lib Dem ministers, with party leader Nick Clegg as Deputy Prime Minister.

In further appointments expected today, Tory George Osborne will become Chancellor with Lib Dem Vince Cable installed as Chief Secretary to the Treasury.

Last night Tory frontbencher William Hague was also confirmed as the Foreign Secretary. He is understood to have accepted the position as reward for giving up the Deputy Prime Minister role.

Lib Dem David Laws is to become Schools Secretary, while Tory Andrew Lansley becomes Health Secretary. Other Lib Dems tipped for prominent roles include Danny Alexander as Scottish Secretary.

The appointments suggest Mr Cameron has taken a massive gamble to secure the support of the Lib Dems for his government.

One senior Tory source said: “It is a huge price but it had to be done. It was the only way to secure agreement.”

Mr Cameron, 43, became Prime Minister at 8.26pm last night. He went to Buckingham Palace to accept the Queen’s invitation to form a Government following a fifth consecutive day of chaos and power brokering at Westminster.And he finally won the battle for the top job at 7.19pm when Gordon Brown surrendered in his last-ditch bid to form a Lib-Lab government.

The outgoing Prime Minister announced his resignation in an emotional statement at Downing Street, saying: “Thank you and goodbye.”

With a final walk around the street with his wife Sarah and young family, Mr Brown bowed out.

Within the hour, Mr Cameron was in front of Number 10 promising a “strong and stable government” despite the extraordinary spectacle of the first Conservative-Liberal coalition since the days of David Lloyd George. In his speech, Mr Cameron said: “Her Majesty the Queen has asked me to form a new government and I have accepted.

“Before I talk about that new government, let me say something about the one that has just passed.”Mr Cameron paid cursory tribute to the outgoing government, but failed to mention Mr Brown by name.

He said: “Compared with a decade ago, this country is more open at home and more compassionate abroad and that is something we should all be grateful for and on behalf of the whole country I’d like to pay tribute to the outgoing prime minister for his long record of dedicated public service.

“In terms of the future, our country has a hung parliament where no party has an overall majority and we have some deep and pressing problems – a huge deficit, deep social problems, a political system in need of reform.

“For those reasons I aim to form a proper and full coalition between the Conservatives and the Liberal Democrats.”

In a key passage, reminiscent of John F Kennedy’s famous speech, he stated: “I want to help try and build a more responsible society here in Britain. One where we don’t just ask what are my entitlements, but what are my responsibilities.

“One where we don’t ask what am I just owed, but more what can I give.”

He concluded by stating how he wanted to build an economy that rewards work, a society with stronger families and communities, and a political system that people can trust.

He said: “Those are the things I care about. Those are the things that this Government will now start work on doing.”

Soon after entering the famous front door, Mr Cameron was congratulated on his appointment by US President Barack Obama.

Business leaders immediately welcomed the announcement of a government led by David Cameron.

The recovery from recession needs to be the priority for the new administration, they said.

David Frost, director general of the British Chambers of Commerce, said: “We look forward to working with the new coalition Government during a critical time for the economy. We will judge the new administration on the basis of what it does to promote business recovery across the UK.

“The BCC wants to see the delivery of a clear and achievable plan for business over the first 90 days of a new administration, a plan that puts business growth at the centre stage.

“Fixing the public finances must be at the top of the agenda. The Conservative-led coalition must be absolutely clear about where spending cuts will fall, and about the need to curb relentless growth in the size and cost of the public sector. They must also follow through on their promise to roll back the planned employer National Insurance rise in any emergency Budget.”

Richard Lambert, director general of the CBI, said: “The agreement between the Conservative and Liberal Democrats to form the next Government is welcome news. Business wants to see a stable government with the authority to take the tough decisions that will be required to keep the economic recovery on track and to get a grip on the fiscal deficit. This coalition should have the votes and the mandate to get on with the job.

“In the past few days, leaders of all three of the main political parties have emphasised their commitment to restoring fiscal stability in the national interest. That must be their overriding priority in the months to come.”

David Cameron's statement:

"Her Majesty the Queen has asked me to form a new Government and I have accepted.

Before I talk about that new Government, let me say something about the one that has just passed.

Compared with a decade ago, this country is more open at home and more compassionate abroad and that is something we should all be grateful for and on behalf of the whole country I’d like to pay tribute to the outgoing Prime Minister for his long record of dedicated public service.

In terms of the future, our country has a hung Parliament where no party has an overall majority and we have some deep and pressing problems – a huge deficit, deep social problems, a political system in need of reform.

For those reasons I aim to form a proper and full coalition between the Conservatives and the Liberal Democrats.

I believe that is the right way to provide this country with the strong, the stable, the good and decent Government that I think we need so badly.

Nick Clegg and I are both political leaders that want to put aside party differences and work hard for the common good and for the national interest.

I believe that is the best way to get the strong Government that we need, decisive Government that we need today.

I came into politics because I love this country. I think its best days still lie ahead and I believe deeply in public service.

And I think the service our country needs right now is to face up to our really big challenges, to confront our problems, to take difficult decisions, to lead people through those difficult decisions, so that together we can reach better times ahead.

One of the tasks that we clearly have is to rebuild trust in our political system. Yes that’s about cleaning up expenses, yes that is about reforming Parliament, and yes it is about making sure people are in control – and that the politicians are always their servant and never their masters.

But I believe it is also something else. It is about being honest about what government can achieve.

Real change is not what government can do on its own – real change is when everyone pulls together, comes together, works together, where we all exercise our responsibilities to ourselves, to our families, to our communities and to others.

And I want to help try and build a more responsible society here in Britain. One where we don’t just ask what are my entitlements, but what are my responsibilities.

One where we don’t ask what am I just owed, but more what can I give.

And a guide for that society – that those that can should, and those who can’t we will always help. I want to make sure that my Government always looks after the ­elderly, the frail the poorest in our country.

We must take everyone through with us on some of the difficult decisions we have ahead.

Above all it will be a Government that is built on some clear values. Values of freedom, values of fairness, and values of responsibility.

I want us to build an economy that rewards work.

I want us to build a society with stronger families and stronger communities.

And I want a political system that people can trust and look up to once again.

This is going to be hard and ­difficult work. A coalition will throw up all sorts of challenges.

But I believe together we can provide that strong and stable Government that our country needs based on those values – rebuilding family, rebuilding community, above all, rebuilding responsibility in our country.

Those are the things I care about. Those are the things that this Government will now start work on doing.

Thank you very much."