The Prime Minister has told Britain's business leaders that his coalition "gets it", as the Government promises to help boost the economy.
Speaking at the annual conference of the Confederation of British Industry (CBI), David Cameron also urged bureaucrats to use the same spirit that was needed to defeat Hitler during the Second World War, in order to get the economy back on track.
Mr Cameron warned the country is at the "economic equivalent of war".
He said: "When this country was at war in the 1940s, Whitehall underwent a revolution.
"Normal rules were circumvented. Convention was thrown out. As one historian put it, everything was thrown at 'the overriding purpose' of beating Hitler.
"Well, this country is in the economic equivalent of war today - and we need the same spirit."
Mr Cameron pointed the finger at lobbyists, as pressure from them creates "risk-averse" civil servants.
"Over the past two and a half years, I've worked with exceptional civil servants who are as creative and enterprising as any entrepreneur, and they are as frustrated with a lot of this bureaucratic rubbish as I am."
Britain came out of its longest double-dip recession since the 1950s He now plans to cut excessive red tape, reducing bureaucratic hurdles for British businesses.
Mr Cameron argued: "Back in 1998 there were 4,500 applications for review and that number almost tripled in a decade. We urgently needed to get a grip on this."
This year's conference takes place against the backdrop of rebounding economic growth, but the outlook remains uncertain.
Recent data showed that gross domestic product jumped 1% in the third quarter, as Britain powered out of its longest double-dip recession since the 1950s with the help of the London Olympic Games.
However, the Bank of England forecast last week that the economy could shrink again in the fourth quarter, with low growth expected for the next three years due to the eurozone debt crisis, tight credit and inflationary pressures.
Today's conference will also be addressed by the coalition Government's Business Secretary Vince Cable, as well as opposition Labour party leader Ed Miliband and London mayor Boris Johnson.
Meanwhile, confidence about future job security for City workers continues to fall, according to a study by recruitment firm Astbury Marsden.
It said that only one in 10 bankers and hedge fund workers believed London will create the most new banking jobs over the next 12 months - down from 22% a year ago.
Some 75% of four of the 460 people polled said the major Asia Pacific centres of Hong Kong, Shanghai and Singapore will create the most new banking jobs.
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