Ed Miliband has called the government "out of touch" in a speech on Nov. 17. Reuters

Britain will never fulfil its "immense potential" while a million young people are out of work, says Labour leader Ed Miliband.

The coalition government is "out of touch" with young people, families and businesses as it pursues austerity measures, Miliband claimed in a speech at the Social Market Foundation.

"It needs to start listening," he said.

"I urge David Cameron, change course now. Change course for the sake of our young people. Change course for the sake of our country."

Britain needs a "better, more responsible capitalism" he said, returning to the themes of his Labour Party conference speech in September.

It would mean less taxpayer bailouts for failing businesses and less inequality, he argued.

Miliband outlined five changes he believes will improve Britain's economy.

    • A refounding of the relationship between finance and the economy
    • A shift from short-termism from companies looking for quick shareholder gains, to long-termism
    • More work on skills and vocational training, to ensure people and businesses get relevant training
    • A change in the rewards culture at the top of businesses to remove the "disconnect" between rewards and results
    • Removing the power from "vested interests" at the top

He said the shift needs to be away from short-termism, which "has held back investment for years", and towards "long-term value".

"In the new economy we need to see a finance sector [where] the success of which isn't measured simply by short term profits made and taxes paid, but by whether those profits are sustained by fulfilling its role as the beating heart of the economy.

"Getting finance to the right businesses at the right time, and so providing returns for savers and pensioners.

"Standing behind, not turning away from, companies taking a long term approach to wealth creation.

"Businesses deserve a finance system there for the long haul when it comes to creating value in the real economy."

Miliband also blasted the "vested interests" at the top who are too powerful.

"It doesn't make economic sense to allow large concentrations of unaccountable private power which do not work in the interests of the country.

"The old view was that some companies were too big to be challenged, never mind too big to fail. They would threaten to leave the country or not invest in Britain."

He continued: "Vested interests, predators that do long term damage, are bad for our business and our economy.

"They raise prices, exploit consumers, and lead to inefficiency.

"Government has a responsibility, on hard-headed economic grounds, to use its power to break up vested interests."