Cable positions himself as the man for a Lib Dem-Labour coalition

Forecasting a hung parliament at the next election, the Business Secretary looked to life after the Tories.

Vince Cable used his speech to the Lib Dem conference to present himself as a free radical, a man who was prepared to work with the Tories and Labour when they were right and to criticise them when they were wrong. He restated the original rationale for the coalition - to provide national government at a time of "permanent crisis" - but added that he made no apology for maintaining "good communications with politicians across the spectrum", before motioning as if he had just received a text, "Please Ed, not now, this is not the time". Cable's political motives became clear at the end of the speech, when he suggested that the most likely outcome of the next election was another hung parliament (the British people, he said, would not want to "entrust their future to any one party"). If you want someone who can lead the Lib Dems into coalition with Labour, he implied, I'm the man for the job; messrs Miliband and Balls already having ruled out working with Nick Clegg.

Throughout the speech, the Business Secretary was careful to combine attacks on both parties with references to those areas where they could work together. So he derided the Tory "headbangers" who wanted a "hire-and-fire culture" and the "backwoodsmen" who opposed a mansion tax, but offered a strong endorsement of George Osborne's deficit reduction plan and declared that he had "considerable personal sympathy" for the Chancellor, who was attacked both for "borrowing too much" and "borrowing too little". In a notable jibe at Andrew Mitchell's expense, which was left out of the original text, he also joked that he was a "mere pleb". As for Labour, he mocked Ed Balls's plan to eliminate the deficit over seven years, rather than the coaliton's six ("wow!"), but nodded to Ed Miliband's agenda when he called for a culture of "responsible capitalism".

Cable, who has openly declared that he is prepared to stand for the Lib Dem leadership, was astutue enough to avoid anything resembling disloyalty to Nick Clegg, praising the Deputy PM early on for proving that "coalitions work". But he also deftly positioned himself as a social liberal ("this is no time for the state to be stepping back"), who, unlike Clegg, continued to command respect across the centre-left. While conservative columnists write paeans of praise to the Lib Dem leader (see Boris Johnson's piece in today's Daily Telegraph), Cable reminded activists of a Telegraph poll showing that he was the cabinet minister who Tory activists most wanted to evict from the government. The message to the party's base - "I'm one of you" - could not have been clearer.

Vince Cable gives his speech to the Liberal Democrat conference in Brighton. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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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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