Vince Cable's leaked letter: the reaction

The Business Secretary's harsh criticism of government economic policy hurts because it is true.

In a remarkable leaked letter, the Business Secretary Vince Cable has ripped apart the government's strategy on growth and other key economic policies.

The four page letter (which you can read in full here) was published yesterday by the BBC. Date 8th February and addressed to David Cameron and Nick Clegg, the private letter warns that "market forces are insufficient for creating the long term industrial capacities we need" and says there is "no connected approach across government". In a brutally frank assessment, Cable writes:

I sense however that there is still something important missing: a compelling vision of where the country is heading beyond sorting out the fiscal mess; and a clear and confident message abut how we will earn our living in future... We can be more strategic and the economic backdrop will increase demands that we are ambitious.

He makes several suggestions, the most radical of which is that the majority taxpayer owned Royal Bank of Scotland is broken up to create a "British Business Bank with a clean balance sheet and a mandate to expand lending rapidly to sound business".

But, predictably, it is not Cable's suggestions which have drawn the most attention, but his tough criticism of the way his own government -- and in places, his own department -- have handled the economy. This lays bare tensions in the coalition, at a particularly crucial time as the Budget draws near.

There was some irritation in the Treasury at the timing of the leak, as tense negotiations over the Budget continue. Downing Street and the Deputy Prime Minister's office both downplayed the importance of Cable's intervention, but a range of Conservative MPs - amongst whom the Business Secretary is already unpopular - expressed their annoyance.

Brian Binley, a Tory member of the Business Select Committee, summed up the feelings of many, telling the Times (£):

I am bitterly disappointed that the man put in charge of the growth agenda feels there is a problem with the agenda.

I find him a pleasant person to deal with. But if he is disappointed by the lack of growth, he is in as good a place as anybody in the Commons to make that clear. If he is struggling to do that, perhaps he should step aside and allow someone else to have a go."

Commentators across the political spectrum have been quick to notice that Cable's suggestions -- interventionism, patriotism, and supporting winners -- closely echo Labour's line. Yesterday, Ed Miliband gave a speech on "industrial activism". My colleague George Eaton noted the concordance between the views touted publically by Miliband and Cable yesterday.

This letter will strike a nerve with Tory top command precisely because it is close to the bone. The charge they are most sensitive to is that they have failed to articulate a strategy for growth, or indeed any economic strategy beyond deficit reduction. It is more damaging because it comes from within the government, even if it is from Cable, Liberal Democrat and eternal discontent. Yet, on the other hand, many Conservative commentators are raising the question: as Business Secretary, isn't Cable at least partly responsible for creating this situation? The shadow business secretary Chuka Umunna has been fast to say that the letter shows that "David Cameron and George Osborne have become roadblocks to the modernisation and reform needed to create a more productive economy."

The blame game will continue in Westminster, but outside it is largely irrelevant. What matters is that these criticisms sting because they are founded in fact, and the government does not have any decisive answers.

Samira Shackle is a freelance journalist, who tweets @samirashackle. She was formerly a staff writer for the New Statesman.

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How the Lib Dems learned to love all-women shortlists

Yes, the sitting Lib Dem MPs are mostly white, middle-aged middle class men. But the party's not taking any chances. 

I can’t tell you who’ll be the Lib Dem candidate in Southport on 8 June, but I do know one thing about them. As they’re replacing a sitting Lib Dem (John Pugh is retiring) - they’ll be female.

The same is true in many of our top 20 target seats, including places like Lewes (Kelly-Marie Blundell), Yeovil (Daisy Benson), Thornbury and Yate (Clare Young), and Sutton and Cheam (Amna Ahmad). There was air punching in Lib Dem offices all over the country on Tuesday when it was announced Jo Swinson was standing again in East Dunbartonshire.

And while every current Lib Dem constituency MP will get showered with love and attention in the campaign, one will get rather more attention than most - it’s no coincidence that Tim Farron’s first stop of the campaign was in Richmond Park, standing side by side with Sarah Olney.

How so?

Because the party membership took a long look at itself after the 2015 election - and a rather longer look at the eight white, middle-aged middle class men (sorry chaps) who now formed the Parliamentary party and said - "we’ve really got to sort this out".

And so after decades of prevarication, we put a policy in place to deliberately increase the diversity of candidates.

Quietly, over the last two years, the Liberal Democrats have been putting candidates into place in key target constituencies . There were more than 300 in total before this week’s general election call, and many of them have been there for a year or more. And they’ve been selected under new procedures adopted at Lib Dem Spring Conference in 2016, designed to deliberately promote the diversity of candidates in winnable seats

This includes mandating all-women shortlists when selecting candidates who are replacing sitting MPs, similar rules in our strongest electoral regions. In our top 10 per cent of constituencies, there is a requirement that at least two candidates are shortlisted from underrepresented groups on every list. We became the first party to reserve spaces on the shortlists of winnable seats for underrepresented candidates including women, BAME, LGBT+ and disabled candidates

It’s not going to be perfect - the hugely welcome return of Lib Dem grandees like Vince Cable, Ed Davey and Julian Huppert to their old stomping grounds will strengthen the party but not our gender imbalance. But excluding those former MPs coming back to the fray, every top 20 target constituency bar one has to date selected a female candidate.

Equality (together with liberty and community) is one of the three key values framed in the preamble to the Lib Dem constitution. It’s a relief that after this election, the Liberal Democratic party in the Commons will reflect that aspiration rather better than it has done in the past.

Richard Morris blogs at A View From Ham Common, which was named Best New Blog at the 2011 Lib Dem Conference

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