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Britain moving in 'right direction', says Cameron

30 December 2012 Last updated at 08:49 GMT

David Cameron has used his New Year's message to say the UK is "heading in the right direction".

The prime minister said 2012 was "tough" but people could look forward to 2013 with "realism and optimism".

In the video address released on Sunday, he admitted he had "no quick fixes" to the UK's economic problems.

But he said there had been "real progress" on cutting Britain's financial deficit, welfare reform and improving school standards.

Labour responded to Mr Cameron's New Year message by saying the prime minister had "promised change" but "nothing is changing for the better".