Alexander struggles to charm as he signs up for more welfare cuts

The man "more right-wing" than George Osborne received a muted response from Lib Dem delegates.

After Vince Cable's deft performance yesterday, Danny Alexander's speech to the Liberal Democrat conference fell rather flat. "Fellow plebs," he began, offering an inferior version of the most memorable line from the Business Secretary's address.

Having been described by one of his party's activists as "more right-wing" than George Osborne, Alexander was on a mission to prove that "it is not impossible to be a Liberal Democrat in the Treasury". So he hailed the progress the coalition had made towards an income tax threshold of £10,000 (adding that the Lib Dems would seek to raise it to £12,500 after the next election), trumpeted the increase in capital gains tax, and, sounding like the world's least terrifying super hero, warned tax dodgers: "we are coming to get you and you will pay your fair share". All of this was politely and even enthusiastically received, but it couldn't compensate for the jarring notes elsewhere.

While he vowed to continue to push for some form of wealth tax, he also signalled that the Lib Dems would have to sign up to further welfare cuts in 2015-16. "At £220bn, welfare is one third of all public spending - and despite our painful reforms it is still rising. We will have to look at it," he said.

Elsewhere, he unwisely mocked Ed Miliband's theme of "predistribution", an idea of considerable appeal to Lib Dem activists. "Apparently it means spending money you don’t have, without knowing where that money is going to come from in the future," he inaccurately surmised. Predictably, it failed to raise so much as a smile from the conference floor.

Offering an even more robust endorsement of George Osborne's strategy than Cable, Alexander erroneously suggested that Britain's record low borrowing rates were the result of the coalition's deficit reduction programme. Yet, as he must surely know, they owe more to the Bank of England's quantitative easing programme (which has seen it buy up hundreds of billions of UK gilts) and our non-membership of the euro (the US, in spite of the loss of its AAA rating, has seen its interest rates fall for the same reason).

Alexander declared that this hard-won "credibility" meant the UK could now afford to guarantee a series of grand projets, offering the example of Crossrail. But with the country already mired in a double-dip recession and unemployment forecast to rise next year, delegates will ask why it took the coalition so long to adopt anything resembling a growth strategy.

One political point worth noting is how little Alexander did to reach out to Labour. He referred twice to "the mess" the party left and joked hopefully that Cable won't have received a "congratulatory text message from Ed Miliband" after his speech (ironically, it was Cable who texted Miliband after the Labour leader's speech last year). The abiding impression was that, in contrast to Cable, he is far more comfortable working with the Tories than Labour. It's one reason why the party faithful struggled to warm to him today.

Chief Secretary to the Treasury Danny Alexander delivers his speech at the Liberal Democrat conference in Brighton. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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What will Labour's new awkward squad do next?

What does the future hold for the party's once-rising-stars?

For years, Jeremy Corbyn was John McDonnell’s only friend in Parliament. Now, Corbyn is the twice-elected Labour leader, and McDonnell his shadow chancellor. The crushing leadership election victory has confirmed Corbyn-supporting MPs as the new Labour elite. It has also created a new awkward squad.   

Some MPs – including some vocal critics of Corbyn – are queuing up to get back in the shadow cabinet (one, Sarah Champion, returned during the leadership contest). Chi Onwurah, who spoke out on Corbyn’s management style, never left. But others, most notably the challenger Owen Smith, are resigning themselves to life on the back benches. 

So what is a once-rising-star MP to do? The most obvious choice is to throw yourself into the issue the Corbyn leadership doesn’t want to talk about – Brexit. The most obvious platform to do so on is a select committee. Chuka Umunna has founded Vote Leave Watch, a campaign group, and is running to replace Keith Vaz on the Home Affairs elect committee. Emma Reynolds, a former shadow Europe minister, is running alongside Hilary Benn to sit on the newly-created Brexit committee. 

Then there is the written word - so long as what you write is controversial enough. Rachel Reeves caused a stir when she described control on freedom of movement as “a red line” in Brexit negotiations. Keir Starmer is still planning to publish his long-scheduled immigration report. Alison McGovern embarked on a similar tour of the country

Other MPs have thrown themselves into campaigns, most notably refugee rights. Stella Creasy is working with Alf Dubs on his amendment to protect child refugees. Yvette Cooper chairs Labour's refugee taskforce.

The debate about whether Labour MPs should split altogether is ongoing, but the warnings of history aside, some Corbyn critics believe this is exactly what the leadership would like them to do. Richard Angell, deputy director of Progress, a centrist group, said: “Parts of the Labour project get very frustrated that good people Labour activists are staying in the party.”

One reason to stay in Labour is the promise of a return of shadow cabinet elections, a decision currently languishing with the National Executive Committee. 

But anti-Corbyn MPs may still yet find their ability to influence policies blocked. Even if the decision goes ahead, the Corbyn leadership is understood to be planning a root and branch reform of party institutions, to be announced in the late autumn. If it is consistent with his previous rhetoric, it will hand more power to the pro-Corbyn grassroots members. The members of Labour's new awkward squad have seized on elections as a way to legitimise their voices. But with Corbyn in charge, they might get more democracy than they bargained for.