Sky News' new studios were launched yesterday amid a growing political storm over allegations of bullying within 10 Downing Street.  So with impeccable timing, Sky News had already landed an interview with David Cameron to celebrate the launch of the new 'city' studio located in London's iconic Gherkin building.

With less than 80 days to go before the country must go to the polls to choose a Government, Cameron admitted to Jeff Randall that he has much left to do to convince the electorate to vote Conservative.

In the first broadcast from the city studio at The Gherkin, the Tory leader also denied any "wobble" by his party in its pledge to go further than the Government in making immediate cuts to the UK's public deficit, currently 12.7% of GDP.

Mr Cameron promises to reduce the number of quangos, but refuses to specify if that means thousands of public sector jobs must disappear.

When pushed, he appears uncertain about the nature and purpose of more than 10% of the Treasury's spending budget for this year.

The Conservative leader describes the bullying allegations made against the Prime Minister as "an unholy mess."

Labour's charge that his party has orchestrated the media coverage is dismissed as "ridiculous, unfounded and paranoid."

In a wide ranging interview, Mr Cameron also seeks to dispel the controversy surrounding the tax status of Deputy Party Chairman, Lord Ashcroft, promises further immigration controls, and defends his decision to ring-fence the UK's £9 billion overseas aid budget. 

Jeff Randall presents a 7.30 pm live half-hour business news show four days a week on Sky News, from Monday to Thursday.