David Cameron has sought to dampen fears over spending cuts as the Tories gather for their first conference since regaining power.

The Prime Minister adopted a more optimistic tone by urging people to get the public spending curbs "into perspective". He also tried to put an end to the simmering row over reductions in the defence budget, insisting troops would still have "everything they need" to fight the Taliban.

The comments came in newspaper interviews as the Conservative Party prepared to kick off its annual conference in Birmingham. The cuts are set to dominate the four-day event, with tough negotiations still ongoing between ministers ahead of the CSR and trade unions planning a series of protests.

Mr Cameron told the News of the World that the curbs - which could be up to 40 per cent in some departments - may not hurt as much as people feared. He said: "Let's put these cuts into perspective. Many businesses have had to make far greater reductions than us in one year."

Speaking to the Sunday Telegraph, he also claimed the UK economy was now out of the "danger zone" where its credit rating was under threat, and was once again "open for business".

It emerged this week that Defence Secretary Liam Fox had written privately to Mr Cameron warning that "draconian" reductions demanded by the Treasury would have "grave consequences". The premier conceded there had been "lively discussions", but said he had a "very good chat" with Dr Fox at Downing Street on Friday.

He added: "It's inevitably a difficult process but I'm very confident that we will complete it and we will have a more strategic, thought-through, more clear defence posture that we can win widespread support for," Mr Cameron said.

"At the same time we will give everything to our troops in Afghanistan that they need. Of course the Treasury and the MoD have to have discussions and they are lively discussions."