Cameron Sets Out 'Moral Capitalism' Vision

The Prime Minister has set out his vision for a "moral capitalism" as the three parties jostle to show they can be tough on big business.

David Cameron called for greater transparency to help curb excesses in business and suggested ways to make it easier for co-operatives to be created.

The speech came amid public anger over city regulation and bonuses.

The Conservatives, Labour and the Liberal Democrats are all fighting for the key political battleground of "responsible capitalism" - shown to be popular with voters.

Ed Miliband and Mr Cameron both made speeches on the subject today, while the Deputy Prime Minister set out the Lib Dem position on Monday.

The Prime Minister said the Conservative party had looked to extend popular capitalism throughout its history, for example by introducing the right to buy and encouraging share ownership.

But he said the model of growth that the last Government operated was not popular capitalism as it encouraged one particular sector at the expense of all others - the City.

More people should have a stake in capitalism, he said.

"I want these difficult economic times to achieve more than just paying down the deficit and encouraging growth," he said.

"I want them to lead to a socially responsible and genuinely popular capitalism. One in which the power of the market and the obligations of responsibility come together.

"One in which we improve the market by making it fair as well as free, and in which many more people get a stake in the economy and share in the rewards of success."

While the coalition prefers to encourage companies to improve through incentives, Mr Miliband called for tighter regulation.

Mr Miliband said: "There are companies that are too powerful and can take advantage... And government hasn't done enough to blunt their power, to say 'Enough is enough'.

"Now other political leaders are talking about taking on irresponsible capitalism, but they need to be tested on their response.

"I don't believe David Cameron can tackle this surcharge culture. He believes in government just getting out of the way - not taking action to protect consumers."

His speech about how consumers are "fleeced" by vested interests took place at the offices of Which?, the consumer organisation.

Tensions are growing as banks prepare to reveal their bonus packages for the last financial year.

The City of London Corporation won its High Court bid to evict anti-capitalist protesters from outside St Paul's Cathedral on Wednesday.

Meanwhile, Wall Street banking giant Goldman Sachs, which employs around 5,300 staff in the UK who are all eligible for performance-related bonuses, announced a bill for pay and bonuses in 2011 of £7.95bn.

It posted a 47% drop in net earnings to £2.8bn for the year to December 31.