Vince Cable settles his scores

Business Secretary takes aim at Steve Hilton, the Murdoch empire and Gordon Brown in his conference

Vince Cable's speech at the Lib Dem conference (read it in full here) felt like a settling of scores. The Business Secretary took aim at the Murdoch empire, Gordon Brown and even David Cameron's policy adviser Steve Hilton. Of the latter, who once proposed abolishing maternity leave, he declared: "What I will not do though is provide cover for ideological descendents of those who sent children up chimneys. Panic in financial markets won't be stopped by scrapping maternity rights."

His attack on the economic right continued. He derided the Lafferites who believe that cutting taxes on the rich will "miraculously" generate new revenue, and asked what "solar system" those who depicted his mansion tax as an attack on "ordinary middle class owners" were living in. But the biggest applause came when, in reference to News International, Cable spoke of his pride that "we never compromised ourselves in that company."

Yet while Cable threw plenty of red meat to the Lib Dem faithful, he combined this with a robust but distinctive defence of George Osborne's deficit reduction strategy. In pursuing fiscal contraction, the Lib Dems, he said, were "following in the footsteps of Stafford Cripps and Roy Jenkins in Britain and, abroad, the Canadian Liberals, Scandinavian Social Democrats and Clinton Democrats in the USA." In a swipe at messrs Balls and Miliband, he added: "They understood, unlike today's Labour Party - that the progressive agenda of centre left parties cannot be delivered by bankrupt Governments." The word that blows Cable's argument apart is "bankrupt". Britain was never on the "brink of bankruptcy" and debt as a percentage of GDP is still lower now than it was for most of the 20th century. Hardly ideal, but then as Cable himself argued: "[W]e now face a crisis that is the economic equivalent of war."

He was admirably frank about Britain's economic woes, insisting pace Cameron that there are no "sunny uplands", only "grey skies". Indeed, whether you favour Keynesian stimulus (as the NS does) or Hayekian austerity, the truth is that the UK faces a permanently reduced level of growth (the reason why the structural deficit is £12bn higher-than-expected).

In an attempt to distinguish himself from Osborne (who was not mentioned by name), Cable made repeated references to the government's "stimulus" programme and to the need for "fairness", what he called a "more responsible capitalism". And he put some red water between himself and Nick Clegg by vowing to reduce income inequality (a concept Clegg has suggested is outdated). But for all his undoubted sincerity, Cable is a member of a government that is presiding over anaemic growth and that is likely to leave office with poverty and inequality higher than when it entered. When the time comes to assess the coalition's record, Cable's progressive rheotric will offer scant comfort.

George Eaton is political editor of the New Statesman.

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Senior Labour and Liberal Democrat politicians call for a progressive alliance

As Brexit gets underway, opposition grandees urge their parties – Labour, Lib Dems, the SNP and Greens – to form a pact.

A number of senior Labour and opposition politicians are calling for a cross-party alliance. In a bid to hold the Conservative government to account as Brexit negotiations kick off, party grandees are urging their leaders to put party politics to one side and work together.

The former Labour minister Chris Mullin believes that “the only way forward” is “an eventual pact between Labour, the Liberal Democrats and the Greens not to oppose each other in marginal seats”. 

 “Given the loss of Scotland,it will be difficult for any party that is not the Conservative party to form a government on its own in the foreseeable future," Mullin argues, but he admits, “no doubt tribalists on both sides will find this upsetting” and laments that, “it may take three or four election defeats for the penny to drop”.

But there are other Labour and Liberal grandees who are envisaging such a future for Britain’s progressive parties.

The Lib Dem peer and former party leader Ming Campbell predicts that “there could be some pressure” after the 2020 election for Labour MPs to look at “SDP Mark II”, and reveals, “a real sense among the left and the centre-left that the only way Conservative hegemony is going to be undermined is for a far higher degree of cooperation”.

The Gang of Four’s David Owen, a former Labour foreign secretary who co-founded the SDP, warns Labour that it must “face up to reality” and “proudly and completely coherently” agree to work with the SNP.

“It is perfectly legitimate for the Labour party to work with them,” he tells me. “We have to live with that reality. You have to be ready to talk to them. You won’t agree with them on separation but you can agree on many other areas, or you certainly should be trying.”

The Labour peer and former home secretary Charles Clarke agrees that Labour must “open up an alliance with the SNP” on fighting for Britain to remain in the single market, calling it “an opportunity that’s just opened”. He criticises his party for having “completely failed to deal with how we relate to the SNP” during the 2015 election campaign, saying, “Ed Miliband completely messed that up”.

“The SNP will still be a big factor after the 2020 general election,” Clarke says. “Therefore we have to find a way to deal with them if we’re interested in being in power after the election.”

Clarke also advises his party to make pacts with the Lib Dems ahead of the election in individual constituencies in the southwest up to London.

“We should help the Lib Dems to win some of those seats, a dozen of those seats back from the Tories,” he argues. “I think a seat-by-seat examination in certain seats which would weaken the Tory position is worth thinking about. There are a few seats where us not running – or being broadly supportive of the Lib Dems – might reduce the number of Tory seats.”

The peer and former Lib Dem leader Paddy Ashdown agrees that such cooperation could help reduce the Tory majority. When leader, he worked informally in the Nineties with then opposition leader Tony Blair to coordinate their challenge to the Conservative government.

“We’re quite like we were in 1992 when Tony Blair and I started working together but with bells on,” Ashdown tells me. “We have to do something quite similar to what Blair and I did, we have to create the mood of a sort of space, where people of an intelligent focus can gather – I think this is going to be done much more organically than organisationally.”

Ashdown describes methods of cooperation, including the cross-party Cook-Maclennan Agreement on constitutional reform, uniting on Scottish devolution, a coordinated approach to PMQs, and publishing 50 seats in the Daily Mirror before the 1997 election, outlining seats where Labour and Lib Dem voters should tactically vote for one another to defeat Tory candidates.

“We created the climate of an expectation of cooperation,” Ashdown recalls. Pursuing the spirit of this time, he has set up a movement called More United, which urges cross-party support of candidates and campaigns that subscribe to progressive values.

He reveals that that “Tory Central Office are pretty hostile to the idea, Mr Corbyn is pretty hostile to the idea”, but there are Conservative and Labour MPs who are “talking about participating in the process”.

Indeed, my colleague George reveals in his report for the magazine this week that a close ally of George Osborne has approached the Lib Dem leader Tim Farron about forming a new centrist party called “The Democrats”. It’s an idea that the former chancellor had reportedly already pitched to Labour MPs.

Labour peer and former cabinet minister Tessa Jowell says this is “the moment” to “build a different kind of progressive activism and progressive alliance”, as people are engaging in movements more than parties. But she says politicians should be “wary of reaching out for what is too easily defined as an elite metropolitan solution which can also be seen as simply another power grab”.

She warns against a “We’re going to have a new party, here’s the board, here’s the doorplate, and now you’re invited to join” approach. “Talk of a new party is for the birds without reach and without groundedness – and we have no evidence of that at the moment.”

A senior politician who wished not to be named echoes Jowell’s caution. “The problem is that if you’re surrounded by a group of people who think that greater cooperation is necessary and possible – people who all think the same as you – then there’s a terrible temptation to think that everyone thinks the same as you,” they say.

They warn against looking back at the “halcyon days” of Blair’s cooperation with the Lib Dems. “It’s worth remembering they fell out eventually! Most political marriages end in divorce, don’t they?”

Anoosh Chakelian is senior writer at the New Statesman.