British Prime Minister David Cameron has set out his vision of a “Greater Britain” as he vowed to spend the second half of his 10 years in power taking on the country’s deepest social problems – poverty, lack of opportunity, discrimination and extremism.

He said he would end the “passive tolerance” of the promotion of extremist ideas, promising to shut down Muslim madrassa schools which teach children hatred and intolerance.

And he said he would stand up for the British values of “freedom, democracy and equality”, telling activists at the Conservative Party conference in Manchester that he wanted to see “less Britain-bashing, more national pride”.

In his keynote speech to the first conference since the Tories’general election victory in May, Mr Cameron made clear he wants the party to occupy territory vacated by Labour as it moves to the left under Jeremy Corbyn.

Labour under Jeremy Corbyn had “completely abandoned” the principles of strong defences, sound money, an enterprise economy and equality of opportunity, leaving the Conservatives “the party of working people, the party for working people - today, tomorrow, always”, he said.

And he won loud applause as he told activists: “We cannot let that man inflict his security-threatening, terrorist-sympathising, Britain-hating ideology on the country we love.”

Wages are rising. Hope is returning. We’re moving into the light

Mr Cameron – who confirmed his plan to step down by the election scheduled for 2020 – said he wanted his time in power to be seen as a “turnaround decade” when the UK not only sorted out its economy but dealt with entrenched social problems.

He set out plans to improve social mobility, reform prisons and improve the chances of children in care, as well as spelling out details of his plan to allow the construction of affordable homes for purchase as he seeks to help young people get on to the first rung of the housing ladder.

He called for “a Greater Britain – made of greater expectations, where renters become home-owners, employees become employers, a small island becomes an even bigger economy and where extremism is defeated once and for all.” The PM said he felt “sick to the stomach” at the thought of young Britons joining extremist groups like Islamic State.

At the conclusion of a conference which has been dominated by jockeying for position in the looming leadership race triggered by his announcement he will not seek a third term, Mr Cameron made a point of handing out praise to some of the leading contenders for the succession. He hailed George Osborne as “our iron Chancellor” and Justice Secretary Michael Gove as “the great Conservative reformer”.

And London mayor Boris Johnson was given a standing ovation as the prime minister said he wanted to single him out for attention, saying: “He’s served this country. He’s served this party. And there’s a huge amount more to come.”

And he claimed that, under the Conservatives, “we’re on the brink of something special”.

“Wages are rising. Hope is returning. We're moving into the light,” said the Prime Minister.

“But we're not there yet. We're only half way through.”

Mr Cameron was joined on stage by wife Samantha as he took a standing ovation from activists at the end of his 55-minute speech.

Seven things we learned:

• Mr Cameron may be stepping down as leader before the next election but he is in as”much of a hurry as five years ago” to get things done.

He has vowed to tackle the country's deepest social problems, such as poverty, lack of opportunity, discrimination and extremism, during his remaining years in power.

• The conference crowd were full of admiration for Boris Johnson. Supporters gave the London mayor a standing ovation after the prime minister heaped praise on his potential successor. A passage on Chancellor George Osborne did not elicit a similar response from supporters.

• Passive tolerance will no longer be tolerated.

Madrassas that teach children anti-Semitic beliefs will be shut down under new powers announced by Cameron. The Tory leader said passive tolerance had turned Britain into a less integrated country.

• Mr Cameron is not afraid to embarrass his wife in the pursuit of a cheap laugh.

The prime minister told the conference hall that he took Samantha a copy of a book by a left-wing economist called The Joy of Tax. “It’s got 64 positions and they are all wrong,” he quipped.

• It can be tough at the top. Reading through intelligence reports about terror plots are some of the “loneliest moments’ in the job, Cameron told the conference.

• Labour leader Jeremy Corbyn has a “security-threatening, terrorist sympathising, Britain-hating” ideology, at least in Cameron’s eyes.

• It doesn’t take much to cheer Mr Cameron up.

The Tory leader told supporters it only takes two words to make him smile – exit poll. The 10pm prediction on polling day sent shockwaves through the political world when it put the Conservatives way ahead of Labour.