PM's 2013 message

The Prime Minister has admitted 2012 had been a tough year for many families but said the country was “heading in the right direction” on all the big issues.

In his new year message, David Cameron said “real progress” was being made on cutting the deficit, reforming welfare and improving school standards.

The PM added: “This is my message to the country at the start of 2013. We can look to the future with realism and optimism.

“Realism, because you can’t cure problems that were decades in the making overnight. There are no quick fixes and I wouldn’t claim otherwise.

“But we can be optimistic too because we are making tangible progress. We are doing what’s right for our country and what’s best for our children’s future.

“On all the big issues that matter to Britain, we are heading in the right direction and I have the evidence to prove it.”

The PM  hailed 2012 as “an extraordinary year for our country”, epitomised by the Queen’s diamond jubilee and the the Olympic and Paralympic Games.

However, Labour leader Ed Miliband used his new year’s message to criticise the government.

He said: “Britain can be better than it is. There can be hope for people again. This government is a government of broken promises and broken dreams."