Welcome to the New Statesman website. Please sign in or register to participate in the conversation.

Mehdi Hasan

Mehdi Hasan’s polemical take on politics, economics and foreign affairs

Syndicate contentRSS

Will Vince Cable be the first to leave Cameron’s cabinet?

The Business Secretary’s comments in the Sunday Telegraph seem to confirm reports that he isn’t a happy man.

Who will be the first Lib Dem member of cabinet to quit this coalition during the course of this "fixed-term" parliament? I know we've already had one Lib Dem departure: the former chief secretary to the Treasury David Laws, of course, resigned after just 17 days on the job. But he didn't really have a choice.

I'm talking about the possibility of a so-called principled resignation by a minister -- if you'll allow me to include the world "principle" in the same sentence as "minister". There are five Lib Dem members of the cabinet -- Nick Clegg (Deputy Prime Minister), Vince Cable (Business Secretary), Danny Alexander (Chief Secretary to the Treasury), Chris Huhne (Energy Secretary) and Michael Moore (Scottish Secretary).

"Calamity" Clegg ain't going anywhere any time soon. As the leader of the Lib Dems, he can't really resign from the cabinet without bringing down the whole coalition government. And so he's hitched his own political future, as well as his party's, to this Lib-Con coalition deal and he now has nowhere else to go. (I'm told John Denham spoke for the entire shadow cabinet when he told the Fabian Review last month that Labour would demand the head of Nick Clegg before doing any deal with the Liberal Democrats in the future.)

Danny Alexander, meanwhile, has become the face of the cuts. I can't see him going either. And Michael Moore? Would anyone notice if he left the cabinet? I'm not sure anyone really noticed when he joined it, after his Lib Dem precessor at the Scottish Office, Alexander, went off to replace Laws at George Osborne's side in HM Treasury.

Then there are Huhne and Cable, both former Labour men who are often described as being on the left of their party. A few months ago, I'd have put my money on Huhne, but the way in which he survived the revelations of his affair, and the subsequent break-up of his marriage, including the repeated attacks from the Daily Mail, suggests he is a man who has no plans to quit front-bench politics. It has become clear, listening to Ed Balls and Ed Miliband describe how keen Huhne was during the coalition negotiations with Labour to abandon the Lib Dems' manifesto pledge to delay spending cuts, that he has far fewer ideological objections to Osbornian austerity than some of us might have assumed in the not-too-distant past.

So that leaves St Vince of Cable, who keeps being humiliated by his Tory coalition partners. First, Cameron and Osborne kowtowed to Tory backbench concerns by limiting the rise in capital gains tax to 28 per cent, after the Business Secretary had accused the likes of David Davis and John Redwood of "reinventing the wheel" on CGT. Then, after Cable announced his interest in a graduate tax, a "senior Conservative source" promptly briefed the BBC that the government would reject such a proposal.

No wonder Vince looks so grumpy and down, or, as I wrote in a column a few weeks ago:

Vince Cable, the Business Secretary (who, in the words of one senior Labour politician who knows him well, is "semi-detached" from the government), is doing his best impression of Walter Matthau in Grumpy Old Men. He is said to mope around the Department for Business, Innovation and Skills (BIS), while some Lib Dems believe he is setting himself up as a restraint inside the cabinet on his old enemy, George Osborne.

In a "candid" interview in today's Sunday Telegraph with Patrick Hennessy, Cable seems to confirm my view:

"People sometimes ask me, 'Are you having fun?' " he says. "No! It's hard work and it's tough, but it's important."

Hennessy writes:

This mantra of fairness is central to his beliefs. He is often cited as the Lib Dem most likely to quit the cabinet on a policy issue, so what are his "red line" issues that might provoke such an exit?

"I worked for some years to get us committed in our party to what we call fair taxes, lifting low-paid people out of tax, we got that in the coalition agreement and it was in the first Budget. So I'm content that that's being carried forward."

Later on Mr Cable returns to the subject of "fair taxes", when asked what he would consider a success after five years as Business Secretary. He even goes much further than Labour ministers ever dared by using the "R" word (redistribution) and spelling out exactly what he means -- "a tax system that means people at the bottom end of the scale pay less and at the top end of the scale pay more".

"Fair taxes" are not what we've got so far from this coalition government, with its "regressive" (© Institute for Fiscal Studies) emergency Budget in June. It's not fair to raise VAT, which hits the poorest hardest, while cutting corporation tax on the banks and leaving bankers' bonuses untaxed. And I have no doubt that the coalition's tax-and-spend changes are only going to get more unfair. How long will Vince Cable be able to stay in such a government while sticking to his self-professed social-democratic principles? Not that long, is my guess.

Tags: Chris Huhne  Vince Cable  Nick Clegg  David Cameron

84 comments

Fraziel's picture

And with regard to St Vince, he knows this coalition is wrong and that the lib dems betrayed the people who voted for them and i think it is just a matter of time before he resigns. I hope so anyway as someone needs to do something before this lot chuck us all out of work so they can save more money for champagne and playing polo.

George Garrett's picture

Vince Cable convinced lib/dems (incl Clegg and the public at large)that he had good ideas, fair principles and I think he would be greatly releaved to pull out of the coalition mess. The tories are using him as a "fair-face" to promote very un fair dangerous policies.
Lord "snuff-all" developed a plan to put a Tony Blair clone in office, using his money to BUY the marginal seats in the general election.
WHY?
So that our democracy becomes a financial dictatorship. The emergency budget is a "TRY-ON", a fire for effect to see how dumb the public really are, this is backed by far-right Tories, so called political and financial experts, and through the newspapers and tv media.
There are enough people now who can see this dogma as plain writing on the wall, but Tories are weighing up the strength of opposition in the run-up to the REAL BUDGET in Octobber.
I don't know what purpose it will serve for Vince Cable to remain in the coalition up to this date? But he must stop soon before he has a heart attack. He should, for every right and proper reason, resign.
Clegg must follow suit and take the rest of the liberals out with him.
This is the best chance to pull the plug on the Con-artists who are using the global financial crisis for their own ends.
Rejoice the Belgrano is sunk! Mrs. T said. Perhaps Mr Cable can stop the UK economy from going down to join the Belgrano,devestated manufacturing, pole tax, and the miners strike. Alistair Darling was proved right by todays good news that 160,000 new jobs had been created through his physcal support for jobs, not one of those jobs can be credited to the CONS; and Alistair has warned that a second dip into back into recession (depression) will be far worse than Thatchers wildest dreams.

I'm not a financial genius. No such person exists.(Only the brainwashed CONS believe that) The people who did not see this crisis coming are the same fools who are now defending the Tory dogma that now threatens the mass population of the UK.
Of course the benefit system has got out of hand and it must be tackled. BUT, a million people thrown out of work in the public sector, BEFORE a single new job has been created in the private sector; leaves exports to grow at a phenominal rate to take up the slack.
Another But! Europe and the USA are our export markets in the main. They are in trouble, so the weakening of the pound is unlikely to be a magic wand.
Mervin King waffled today, in the pathetic task of trying to back the Tory head-long rush into disaster. Nobody was convinced, he muttered about quantative easing? I believe he's another good chap trying not to panic the public. One tory nit-wit expert, tried to say that people would save more? Which planet did he come from?
Vince you are being undermined and belittled where you are. PLEASE, see that you will drown. Get out and use your party to bring the TORIES DOWN.

9xzulug's picture

i'm still trying to get my head around a party that actually lost more votes than in the previous election but still end up in power.HELLo.lib dems are in a catch 22 situation,if coalition policies fail COUNTRY lib dems are doomed,if the policies work,we'll see in next election tories taking all the plaudits/glory and drop lib dems.MARK MY WORDS

Clara Kabalevsky's picture

God no! I don't live in London! I hope N. Irish villagers are included among the villagers...no wait- they don't even get to vote in the British elections anyway...even though the party in power in Britain decides their fate for the most part...

Bill Kristol-Balls's picture

@ 9xzulug

You should refudiate your post as the Lib Dems added the best part of 1,000,000 votes in 2010 compared to 2005.

Mmmmnnnnn factualness.

demonax3's picture

I nominate Martin L as Troll of the year.

Martin L's picture

Hi Clara- I've been unemployed, but not for long. Anyone who genuinely wants a job can find one.

Perhaps you mean that they can't find the job they really want ie they were a regional sales manager on 40K, and they can't find a similar job.......

However, I no one will do the poorly paid jobs. As i drive to work, the fields are full of hard working immigrants, work that most British find 'beneath them'

The truth is that if we capped unskilled immigration and cut benefits, then people would have to work in fields (like their ancestors did!).

If they want a better job, then go for it - the nhs employees countless 'immigrants' in highly paid jobs - their is no reason the British couldn't do these.

if 1 million of these people got off their arses we would 'need' one million less 'immigrants'

of course, this will never happen, because the unemployed refuse to work.

with regard to voting, i stand by that. If they won't work within 6 months, or choose not to accept a lower paid job, why should they enjoy the right to particpate in elections? Also eventually, the 5's will only be able return a government that promotes idleness, and guess who will have to pay?

people often forget that it is the middle class that gets shafted most.

cosmoos's picture

How can you expect a bunch of Tory millionaires to run the country in anybody's interest,but their own?

Clara Kabalevsky's picture

I couldn't quite understand your post Ettch Tee but I gather you don't like this Jim Mc Cann "character"? I don't know who he is but everyone has the right to visit the cinema if they want to...

Martin L's picture

and by 'one million less immigrants' i mean we will need to let in one million less next year.

personally, i believe that the hard working immigrants (whether vegetable pickers or NHS consultants) deserve to stay here MORE than the long-term unemployed...

bonk's picture

bloody shame this thread got hijacked by fuckwits who know no better thaan to promote hatred thumbs up clowns.

Clara Kabalevsky's picture

I'm honestly not a tory, don't insult me! I'm not shit-stirring either- as I stated I didn't quite understand your post but now that you've kindly clarified all is well!

Freeman2's picture

I'm afraid Cable is more likely to have a heart attack than resign from the government.

frances smith's picture

its nice to see the tories out in force, hello boys, bnp too left wing for you, is it?

dont worry cameron's out soon, though i did read in the daily mail that if duncan smith doesnt get his way over benefits reform, and the treasury is blocking it, he might resign.

its quite disgusting to read these attacks on people on benefits, and to see cameron leading it, isnt this how milosevic started?

at what stage can we take him to the war crimes tribunal?

demonax3's picture

OK! I'll nominate Etch Tee(Itchy?) too-sorry I forgot you.

Martin L's picture

I do apologise Spiller. many of my comments have been emotional.

I grew up in an impoverished yorkshire pit village.

I had 'feckless' parents, and were surrounded by such people (though obviously there were also many decent, hard working types).

I suppose that I am being harsh. I am sort of a snob (but without meaning to be). I am proud to have become moderately successful, and I am sometimes angry that others wil not do the same.

That notwithstanding, my bark is worse than my bite. I do acknowledge that some people do not have the resources to be 'successful' (whatever that means.

I suppose that indolence really is an issue that cannot be solved (either easily or even at all). That is the frustrating part.

Martin L's picture

'attacks on people on benefits' Frances,

How about 'attacks on middle class' who have to pay for the scroungers.

typical how the 'lefty do-gooders' smear any one who doesnt agree with them as 'fascist' 'nazi' or 'bnp' when the real truth is that communists and socialists have been the biggest tyrants that history has ever known - hitler, stalin, blair, brown, scargill......

Dave C's picture

Spiller, EhtchTee,

Cost of bank rescue is £850 billion.

National Audit Office report December 2009

"The National Audit Office has concluded that the public support provided to UK banks by the Treasury was justified, given the scale of the economic and social costs if one or more major banks had collapsed. ... The final cost to the taxpayer will not, however, be known for a number of years.

"Today’s overview of the government’s response to the crisis shows that the purchases of shares by the public sector together with offers of guarantees, insurance and loans made to banks reached £850 billion, an unprecedented level of support."

http://bit.ly/7OMtKZ

Cameron reckons that £5.2 billion of benefit money is lost to fraud and error each year. So, taking his figures as Gospel, if he succeeds in eliminating fraud and error, then in just over 163 years, he would have saved as much as the bankers have already cost us.

george garside's picture

Don't blame me i voted Labour.

Clara Kabalevsky's picture

Add Thatcher to your list Martin L. No tyrant list is complete without Thatcher.

I do agree with you in some respects though, but in essence power corrupts. Capitalism has been here since the beginning of time but communism hasn't had quite so long to develop and improve. The basic ideas of communism are admirable however of course no-one can argue that the interpretation of these ideas to date has been a disaster.

Clara Kabalevsky's picture

Martin L thanks for the reply. I've only spotted it now. However I'm not talking about people in jobs earning 40K at all. I'm talking about labourers in the construction industry who are on low wages already. I live in a rural area where most of the men are hardworking labourers, builders, plumbers etc who have families. They don't have work because there is none.

I do agree with you about the middle classes being affected though, by some people who abuse the benefits system.

bonk's picture

Cable wont leave power is a funny thing.

Martin L's picture

Hi Fraziel.

I accept your comments and agree with them, I don't want to sound like Tebbit, but.'''

Fraziel, I am sure there are thousands of very talented, skilled people in Glasgow (very sincerely),

they have the following options;
1. keep trying to get a good job.
2. take a mind numbing job
3. become homeless/drop out
4. become a criminal
5. join the forces
6. retrain/uni
7 Move!!!!!!!

I know that people say why move? why should I have to??? I have some sympathy but I am glad I left that deprived sink pit village. i am glad i left my boring factory job. I now have a great career and home, land etc to add to my fantastic family.

I would still be stuck in a factory oop north.

mittfh's picture

@Dave C - in a report published by Citizens Advice Bureaux (http://is.gd/ebx3R), about £16bn of means-tested benefits go unclaimed each year. That adds an interesting further dimension to the government's attempts to reclaim £5bn of overpayments. No doubt they plan to make benefits even harder to get, so by reducing the money spent in overpayments, they further increase the amount of unclaimed benefits...

Fraziel's picture

I have been hearing Cameron going on about the 5 billion + lost to fraud and error, what he doesn't mention is that just over 98% of ALL benefit claims were processed correctly last year so its going to be v difficult to improve on the error side of things.

With regard to fraud, I am pretty sure that cutting 25% from the DWP budget and the resultant reduction in fraud officers ( already over stretched) is not going to help!

Martin L's picture

so now i'm a troll as well, very droll!

The benefits cheats should be targeted, but it was wrong to bail out the banks too. The corporate cheats must be targeted too.

So some people think that benefits dosent cost much? bollocks.

if it wasnt for the feckless in society, how much would we really need to spend on;

education,
health,
social services;
courts, probation, police etc etc etc?

the real cost of idleness is phenomenal.

But in this model all of this industry (mostly public sector) would be redundant, and this country hasn't the know how or gumption to constructively fill the gap......

In the words of Sir humphrey, this country can have as much unemployment as its prepared to pay for.

it could be argued therefore that the use of prison officers etc is 'invisible' unemployment ie wasting scarce resources that could be better used elsewhere.......

Chorley Man's picture

Vince should pull out now and become LibDem leader. Clegg's stock has crashed, never to return. Clearly more hubristic than we all thought.

Martin L's picture

Hi Clara.

I fully accept that many tradesmen are struggling to find work at the minute. My point is that Ive known trades people who have worked for 6 months, then not worked for 9 months (or similar), all of their working lives.
It appears that their is an over-supply of trades people. I am suggesting that the ones who have 'had enough' re-train - or move. Where I live we are short of skilled types.

I fully accept that re-training is lengthy and expensive, as is relocating. However, something must give.

My points are meant to be thought provoking, becasue the fact is, something as to give, becasue the situation is getting worse.

William's picture

"With 2 to 3 million on benefits and 5 million on 'sick' no wonder we've no money"

Thanks for that Martin. Hand's up anyone who seen last weeks Mitchel and Webb - "have you tried running the figures to see if killing all the poor would help? well, what's the harm in just running the figures to see"

Your first comment sounds abit like this. Subsequent comments seem to reveal you are perfectly capible of mounting a better argument if you want to. Please, let us not let our side of the internet sink to the lows of american side; where people just say the first thing that comes into their head. Perhaps more energy put into tring to convince people by reason of your point of view, and less into trying to be 'thought provoking' would help.

Andrea Gill's picture

Biggest load of rubbish I've ever read, you've excelled yourself Mr Labour mouthpiece

Corcaighrebel's picture

Coalition of the willing????

Happens all the time, piece by little piece the aircraft starts to fall apart, general election in the New Year.....

Chorley Man's picture

What a shame there are so few great orators left. People who actually speak their mind rather than just take home the bacon. Cable is a true gent amongst a load of apostates, much like the great Tony Benn.

Hova's picture

If Vince goes, the whole coalition falls with it. He is easily the most prominent and principled member of the front bench. Get real, Nick Clegg is simply a tool.

Bill Kristol-Balls's picture

Vince has always looked grumpy hasn't he?

rebelrebel's picture

It looks like all of them are going to stand by whilst people are turfed out of their council 'homes' and have their pitiful benefits reduced. Therefore I cannot envisage a scenario that will induce any of these cold hearted wretches to resign.

Andrea Gill's picture

@Alexandra - you're a tool if you think Simon Hughes is going to join you. He made it very clear he wants to kill off and replace your party, not jump into bed with the authoritarian busted flush that is Labour http://simonhughes.org.uk/news/000263/speech_to_special_liberal_democrat...

LabMike's picture

The Lib Dems' own contributions are regressive- several bodies have had a go at the income tax cut for giving more to the middle and rich than to the poor, for instance.

We broadly know what the government plans to do and who it's going to hurt. The Lib Dems know this too, yet they're still there.

If any quit later on it will be because what they support now will make them unpopular, not out of principle, and I'd hope Labour wouldn't be open to them. Would Vince Cable be willing to split off and form a new party yet again? I can't see it.

quattro man's picture

Why would Vince want to leave the peoples revolutionary coalition party? The public love them and him. He has power and knows that Labour have no chance of getting into power again in his lifetime. Dream on Mehdi. The peoples revolutionary coalition party train has left the station...you have been left standing on the platform....Bye bye

Dom's picture

He's an old man who wants to taste power, can't see him or any of the others jumping ship until well into 2011.

It is regrettable what's happened, saddening. Down with Dave and the tories before they ruin the nation again!

Alexandra's picture

I hope Vince joins the Labour Party - but I really wish Simon Hughes does.

Garry K's picture

@ Hova

"If Vince goes, the whole coalition falls with it. He is easily the most prominent and principled member of the front bench. Get real, Nick Clegg is simply a tool"

-------------------------------------

Calling Nick Clegg a tool is one of the politer phrases that has passed my lips since the election..

thinkov's picture

avoid like the plague

we want vince fibre optics

your career is over sunshine

Darth Formby's picture

How does that make Alexandra dim Max?

Martin L's picture

cut benefits and make the f@#kers work!

if they won't work stop benefits, and make them take their children to 'new' schools, ones that actually teach the kids how to read and write, and make sure they get 3 meals a day, regardless of the parents spending all the money on plasma TVS, alcohol and Benson and Hedges (pardon the advertising).

Flog the parents who wont comply and contraceptive implants if necessary - sorry, no government will tackle the problems until the 5's take us over.

anyone who has been unemployed 6 months - take their votes away (labour votes would halve).

is this fascist? not at all - with 2 to 3 million on benefits and 5 million on 'sick' no wonder we've no money - and yes, there are genuine disabled, but most can do productive work.

sadly disability is a social disease these days, and very contagious!

scotty's picture

@ Andrea Gill

Lib Dems want to kill off Labour? I'd suggest bookies would give you much shorter odds on the Lib Dems kicking the bucket first.I think the coalition is the beginning of the end for the Lib Dems, history repeating itself and all that.

Carl's picture

Just that list of the posts held by the LibDem cabinet members tells you how much of a laughably poor deal they struck with the Tories, compared to what the Tories are getting from them. A lightweight deal for a party that looks more and more lightweight as time goes on.

Actually the list of snubs and humiliations that Cable has received from Osborne, Cameron et al since the start of the coalition is much longer than anyone has has reported so far. Just look at all the decision-making committees that he has been frozen out of for a start.

That said, Cable isnt going anywhere. Faced with the disaster of a coalition deal agreed by his boss having to push through dogs dinner policies like Post Office privatisation as well as having to come out and defend Osborne's anti-redistributive gouge, slash and burn policies on taxes and government (anti-) spending, any politician with the courage of their (LibDem) convictions would and should have said thanks but no thanks.

If Vince Cable was going to go he would have either refused to take the job and the portfolio he was offered or would have left after the budget when the full scale of the betrayal of LibDem values was laid out for all to see. He did neither.

Instead he chose to spend his time in front of the TV cameras defending other people's policies, policies that previously he wouldnt have crossed the street to spit on, while his party sleepwalks its way to political oblivion over the next twelve months.

Camus's picture

Another rather vapid, poorly supported attempt to sow discord among the Lib Dems, I'd say. The truth is that nobody resigns unless there is a fat dossier at the Sun or Scotland Yard (probably the same one) with some pretty pictures and a few emails in it about cash payments and a little lovy dovy on the side.

Martin L's picture

what about scargills brown shirts who beat my neighbours up and smashed their house up- their crime - going to work of course.

but they deserved it didnt they?

etch - get a grip, the miners got what they deserved - and lets not forgett how they swanned around the pit villages like they were the uper class- why? because they had more money than everyone else of course! - absolute proof that money corrupts - the miners (many of them)were little better than Orwellian pigs!

of course, your memories don't reflect that do they?

swss's picture

"With 2 to 3 million on benefits and 5 million on 'sick' no wonder we've no money"

Martin with his wise analysis of the economy, if only he were our leader there'd be no recession!

/sarcasm

Alexandra's picture

Max do you have a learning deficit? Most probably you are another totally thick bnp supporter.
I bet you are a benefit scrounger living in a council flat somewhere - this explains why you are so pathetic.

Post new comment

By submitting this form, you accept the Mollom privacy policy.

Latest tweets