He will throw his weight behind a far-reaching report which calls for a bonfire of regulations that employers say are stifling job creation.
The report by Adrian Beecroft, a venture capitalist, will be published in full this week after months of delay.
The Sunday Telegraph has learnt that it will call for firms to be given much greater flexibility to make redundancies; for the lifting of restrictions on the equality laws that industry says are stifling job creation, and for a cap on employment tribunal payouts.
Mr Cameron will risk severe tensions with the Liberal Democrats by backing such far-reaching proposals but will use his support to attempt to reassure business that the Government is “pro-growth”, after a bruising reaction to the Queen’s Speech.
The Sunday Telegraph has learnt that the 15-page document, drawn up by Mr Beecroft after he was given access to Government lawyers, has 20 proposals including: