10 Questions for Vince Cable, post-Question Time

An open letter to the Business Secretary following our debate on BBC1.

Dear Vince,

Nice to see you last night in Liverpool. I just got home!

You've had a great week, with a strong speech to your party members at the Lib Dem conference followed by a fluent performance on Question Time. (You were also, I hear, a big draw at the NS fringe on "progressive austerity" in Liverpool on Monday.)

But QT is just too short for me. Sixty minutes? Call me greedy, but I wanted more time to continue our debate and discussion on the economy. If we'd had longer, and it'd just been you and me, here are the questions I'd like you to have answered for me:

1) You have referred to "slashing now" as "an act of economic masochism" (13 March 2010) and have said that "cutting too soon and pushing the economy back into recession will make the deficit worse, as tax receipts fall and benefit payments rise" (24 April 2010), so how can you now claim that your opponents are "deficit deniers" for making precisely the same case as you made only months ago?

2) You claimed last night on television that we were facing a financial "emergency" and that the deficit had to be confronted and cut down. But in your book, The Storm, you wrote that UK debt is "moderate in comparison with those of other countries" (p25) and that budget deficits of 13 or 14 per cent in the US and the UK were "not a great cause for alarm" (p144). How do you explain the disconnect?

3) You referred in your conference speech to the "spivs" and "gamblers" in the City, and denounced bankers' bonuses on Question Time, but bank shares rallied after your coalition's "emergency Budget" in June and Deutsche Bank, for example, described the Budget as a "good outcome for banks". Again, how do you explain the disconnect?

4) Nick Clegg said five days before the general election: "My eight-year-old ought to be able to work this out -- you shouldn't start slamming on the brakes when the economy is barely growing." How is it that eight-year-old Antonio Clegg has a greater grasp of economic theory, and of the lessons of economic history, than you, Clegg or Danny Alexander?

5) Do the latest figures from the Republic of Ireland worry you? Make you doubt your support for immediate and widespread "austerity"?

6) How about the news from the eurozone?

7) You have said that John Maynard Keynes is your hero, but isn't Keynes turning in his grave right now? Why is it that all the leading Keynesian economists (Paul Krugman, Joseph Stiglitz, David Blanchflower, Robert Skidelsky, etc) are so opposed to your coalition's cuts?

8) Can you tell us when exactly you switched your position on cuts? The date and time, please?

9) In the green room before the programme was recorded, you and I discussed how much Liverpool had changed and progressed in recent years. So do you agree or disagree with the Lib Dem leader of Liverpool City Council, Warren Bradley, when he says that northern cities like his own "could be set back ten or 20 years" by the impact of your coalition's cuts?

10) You condemned monopolies and "rigged markets" in your conference speech. Will you promise to launch a review, on public-interest grounds, of Rupert Murdoch's bid to take full control of BSkyB? Or will you have to check with Andy Coulson first?

I hope you had a safe journey back to London.

Regards,

Mehdi

 

 

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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The UK is dangerously close to breaking apart - there's one way to fix it

We must rethink our whole constitutional settlement. 

When the then-Labour leader John Smith set up a report on social justice for what would be the incoming government in 1997, he said we must stop wasting our most precious resource – "the extraordinary skills and talents of ordinary people".

It is one of our party’s greatest tragedies that he never had the chance to see that vision put into practice. 

At the time, it was clear that while our values of equality, solidarity and tolerance endured, the solutions we needed were not the same as those when Labour was last in power in the 1970s, and neither were they to be found in the policies of opposition from the 1980s. 

The Commission on Social Justice described a UK transformed by three revolutions:

  • an economic revolution brought about by increasing globalisation, innovation and a changing labour market
  • a social revolution that had seen the role of women in society transformed, the traditional family model change, inequality ingrained and relationships between people in our communities strained
  • a political revolution that challenged the centralisation of power, demanded more individual control and accepted a different role for government in society.

Two decades on, these three revolutions could equally be applied to the UK, and Scotland, today. 

Our economy, society and our politics have been transformed even further, but there is absolutely no consensus – no agreement – about the direction our country should take. 

What that has led to, in my view, is a society more dangerously divided than at any point in our recent history. 

The public reject the status quo but there is no settled will about the direction we should take. 

And instead of grappling with the complex messages that people are sending us, and trying to find the solutions in the shades of grey, politicians of all parties are attached to solutions that are black or white, dividing us further. 

Anyone in Labour, or any party, who claims that we can sit on the margins and wait for politics to “settle down” will rightly be consigned to history. 

The future shape of the UK, how we govern ourselves and how our economy and society should develop, is now the single biggest political question we face. 

Politics driven by nationalism and identity, which were for so long mostly confined to Scotland, have now taken their place firmly in the mainstream of all UK politics. 

Continuing to pull our country in these directions risks breaking the United Kingdom once and for all. 

I believe we need to reaffirm our belief in the UK for the 21st century. 

Over time, political power has become concentrated in too few hands. Power and wealth hoarded in one corner of our United Kingdom has not worked for the vast majority of people. 

That is why the time has come for the rest of the UK to follow where Scotland led in the 1980s and 1990s and establish a People’s Constitutional Convention to re-establish the UK for a new age. 

The convention should bring together groups to deliberate on the future of our country and propose a way forward that strengthens the UK and establishes a new political settlement for the whole of our country. 

After more than 300 years, it is time for a new Act of Union to safeguard our family of nations for generations to come.

This would mean a radical reshaping of our country along federal lines where every component part of the United Kingdom – Scotland, Wales, Northern Ireland and the English regions – take more responsibility for what happens in their own communities, but where we still maintain the protection of being part of a greater whole as the UK. 

The United Kingdom provides the redistribution of wealth that defines our entire Labour movement, and it provides the protection for public finance in Scotland that comes from being part of something larger, something good, and something worth fighting for. 

Kezia Dugdale is the leader of the Scottish Labour party.