Conservatives for Cable: why the Tories want a new Lib Dem leader

To win the next election, the Tories need a left-leaning Lib Dem leader who can win over Labour voters in Tory-Labour marginals.

After one of the most fractious months in the life of the coalition since 2010, today's Times reports that David Cameron's team are examining various scenarios for a pre-election divorce between the two parties. One option ("an amicable divorce") would see the coalition break up next summer and the Lib Dems support the Conservatives on a "confidence and supply" basis for the reminder of the parliament. This would involve Clegg's party backing the government in any vote of no confidence ("confidence") and voting through the 2015 Budget ("supply"). 

Under another scenario ("an acrimonious split"), Clegg would be ousted as Lib Dem leader and replaced by a more left-leaning figure, most obviously Vince Cable (who ambiguously remarked yesterday: "I don't particularly want to be leader"), who would reposition his party as equidistant between the Tories and Labour.

There are a significant number of Tories who hope that the Lib Dems pursue the latter course. If it is to win the next election, Cameron's party needs a Lib Dem leader who can win over Labour voters in Tory-Labour marginals. At present, after the defection of around a third of 2010 Lib Dem voters to Labour, the Tories stand to lose dozens of seats at the next election (Corby was an early warning) -  there are 37 Conservative-Labour marginals where the third place Lib Dem vote is more than twice the margin of victory. 

This fact has led the Tories to wonder aloud whether a change of Lib Dem leader before 2015 is now in their interests. The hope is that a social democratic leader such as Cable or Tim Farron, both of whom have signalled their availability, could prompt the party's former supporters to return home from Labour. Tim Montgomerie told me last year that "a left-wing replacement" of Clegg in 2014 was "vital to Tory hopes".

Those with a stake in a Lib Dem recovery have been encouraged by polls showing that the party would perform better with Cable as leader. A ComRes survey last September showed that support for the Lib Dems would rise to 18 per cent under Cable, compared to 14 per cent under Clegg. 

Examine all of this and it soon becomes clear just why Michael Gove was so keen to talk up the prospects of a Lib Dem putsch against Clegg last weekend. 

Vince Cable and Michael Gove after the coalition's first cabinet meeting on 13 May 2010. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The Brexit slowdown is real

As Europe surges ahead, the UK is enduring its worst economic growth for five years. 

The recession that the Treasury and others forecast would follow the EU referendum never came. But there is now unmistakable evidence of an economic slowdown. 

Growth in the second quarter of this year was 0.3 per cent, which, following quarter one's 0.2 per cent, makes this the worst opening half since 2012. For individuals, growth is now almost non-existent. GDP per capita rose by just 0.1 per cent, continuing the worst living standards recovery on record. 

That Brexit helped cause the slowdown, rather than merely coincided with it, is evidenced by several facts. One is that, as George Osborne's former chief of staff Rupert Harrison observes, "the rest of Europe is booming and we're not". In the year since the EU referendum, Britain has gone from being one of the west's strongest performers to one of its weakest. 

The long-promised economic rebalancing, meanwhile, is further away than ever. Industrial production and manufacturing declined by 0.4 per cent and 0.5 per cent respectively, with only services (up 0.5 per cent) making up for the shortfall. But with real wage growth negative (falling by 0.7 per cent in the three months to May 2017), and household saving at a record low, there is limited potential for consumers to continue to power growth. The pound's sharp depreciation since the Brexit vote has cut wages (by increasing inflation) without producing a corresponding rise in exports. 

To the UK's existing defects – low productivity, low investment and low pay – new ones have been added: political uncertainty and economic instability. As the clock runs down on its departure date, Britain is drifting towards Brexit in ever-worse shape. 

George Eaton is political editor of the New Statesman.