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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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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