Labour turns on Cable over "capitulation" to the Tories

Chuka Umunna says reforms to employment law are an attack on workers' rights.

Last week, Vince Cable was eulogised by Ed Balls as the Lib Dem who could no almost wrong. "Vince has distinguished himself by always making the argument about what's right for Britain," he said, as he beamed at the Business Secretary, sat beside him on Andrew Marr's sofa.

But Balls's colleague Chuka Umunna, the shadow business secretary, isn't feeling so charitable towards Cable. Earlier this morning, Umunna took to Twitter to criticise the Business Secretary's reforms to employment law as an attack on workers' rights. He added that Ming Campbell, who has questioned Cable's textual relations with Labour, should worry more about "Cable's capitulation to Fallon, Hancock and co. on employment law"

While Cable will today formally reject calls for the introduction of "no-fault dismissal" or fire-at-will (a proposal that emanated from Tory donor Adrian Beecroft's now-infamous report on employment law), he will announce a significant cut in the cap on unfair dismissal payouts. The current £72,000 limit is expected to be reduced to an employee's annual salary, or another lower figure. In addition, employment tribunals will be sped up, so that costs are reduced and weak cases thrown out more swiftly. Though you wouldn't know it from the right's response, 80 per cent of Beecroft's recommendations have been adopted or put out to consultation.

Continuing his assault on Cable, Umunna declared, "We're not in a recession because of the rights our constituents have at work - its cos of the govt's failed economic plan." The Business Secretary, of course, wouldn't disagree. During his appearance on Marr last week, he sagely observed, "The problem of growth is that we have a very serious shortage of demand. It's nothing to do with those supply side measures basically. It's a demand issue."

As a result, suspicion persists among the Tories that Cable's heart isn't really in it. But whatever the Business Secretary's true feelings, a third successive quarter of recession persuaded the coalition partners to strike a grand bargain on growth. You give us supply-side reform, and we'll give you a small business bank (a measure that allowed Cable to hail the end of "pure laissez-faire" economics).

Umunna's decision to respond with an attack of rare ferocity suggests that not everyone in Labour is so keen to lure the Business Sectetary from the Tories' clutches.

Business Secretary Vince Cable will announce reforms to employment law today. Photograph: Getty Image.

George Eaton is political editor of the New Statesman.

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David Cameron softens stance: UK to accept "thousands" more Syrian refugees

Days after saying "taking more and more" refugees isn't the solution, the Prime Minister announces that Britain will accept "thousands" more Syrian refugees.

David Cameron has announced that the UK will house "thousands" more Syrian refugees, in response to Europe's worsening refugee crisis.

He said:

"We have already accepted around 5,000 Syrians and we have introduced a specific resettlement scheme, alongside those we already have, to help those Syrian refugees particularly at risk.

"As I said earlier this week, we will accept thousands more under these existing schemes and we keep them under review.

"And given the scale of the crisis and the suffering of the people, today I can announce that we will do more - providing resettlement for thousands more Syrian refugees."

Days after reiterating the government's stance that "taking more and more" refugees won't help the situation, the Prime Minister appears to have softened his stance.

His latest assertion that Britain will act with "our head and our heart" by allowing more refugees into the country comes after photos of a drowned Syrian toddler intensified calls for the UK to show more compassion towards the record number of people desperately trying to reach Europe. In reaction to the photos, he commented that, "as a father I felt deeply moved".

But as the BBC's James Landale points out, this move doesn't represent a fundamental change in Cameron's position. While public and political pressure has forced the PM's hand to fulfil a moral obligation, he still doesn't believe opening the borders into Europe, or establishing quotas, would help. He also hasn't set a specific target for the number of refugees Britain will receive.

 

Anoosh Chakelian is deputy web editor at the New Statesman.