Cable's most serious challenge yet to Cameron's authority: "Jeremiah was right"

The Business Secretary's repeated attacks on the Tories in his speech and his warnings of a new housing bubble meant it was easy to forget he is serving in the government at all.

There were moments in Vince Cable's speech to the Lib Dem conference where you had to pause to remind yourself that he is a serving member of the government, rather than an opposition politician. While Nick Clegg and Danny Alexander are focused on ensuring that the Lib Dems receive their share of the credit for the economic recovery, Cable cast himself as a Cassandra warning of a new and dangerous housing boom.

In the most striking passage of his speech, he declared that "there are already amber lights flashing to warn us of history repeating itself" and derided those (George Osborne) who would settle for "a short-term spurt of growth fuelled by old-fashioned property boom and bankers rediscovering their mojo". After David Cameron rather mildly remarked, "It's not right to cast Vince as a perpetual Jeremiah. He can brighten up from time to time", Cable pulled no punches in response, quipping that "David Cameron has called me a Jeremiah, but you’ll recall from your reading of the Old Testament that Jeremiah was right." He added: "He [Jeremiah] warned that Jerusalem would be overrun by the armies of Nebuchadnezzar.  In my own Book of Lamentations I described how Gordon Brown’s New Jerusalem was overrun by an army of estate agents, property speculators and bankers.

"The problem we have now is that the invaders are coming back.  They have a bridgehead in London and the south east of England. They must be stopped.  Instead we need sustainable growth."

Cable has never been a stirring platform orator and the response from delegates was more muted than in previous years but the speech was the most significant he has delivered since becoming Business Secretary. More than at any other point, he has gone exceeding the normal limits of collective responsibility.

While the speech opened with a recollection of the "unhealthy tribalism" and "Tammany Hall culture" that led him to resign from Labour in the 1970s (which he suggested had been reborn in Falkirk and other "Labour fiefdoms"), it was otherwise dominated by excoriating attacks on the Tories. He declared that "the nasty party" was back, with "dog whistle politics, orchestrated by an Australian Rottweiler.  Hostility towards organised labour, people on benefits and immigrant minorities." He rebuked his "cabinet colleagues" for "careless talk" about Britain leaving the EU and declared: "Let’s remember that we voted to join the present Coalition.  We did not vote to join a coalition with UKIP."

Elsewhere, in a rebuke to those on the right of the Lib Dems, such as Jeremy Browne and David Laws, seeking to push the party in a more free market direction, he warned that it was not enough to be "a nicer version of the Tories", again signalling his instinctive preference for Labour.

Ahead of 2015, the balancing act required of the Lib Dems is to differentiate themselves from the Tories without discrediting the government they have served in for more than three years. After Cable's unreserved attacks on the coalition's economic policies, Clegg will feel that the Business Secretary has failed in that task.

Vince Cable delivers his speech at the Liberal Democrat conference in Glasgow. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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The buck doesn't stop with Grant Shapps - and probably shouldn't stop with Lord Feldman, either

The question of "who knew what, and when?" shouldn't stop with the Conservative peer.

If Grant Shapps’ enforced resignation as a minister was intended to draw a line under the Mark Clarke affair, it has had the reverse effect. Attention is now shifting to Lord Feldman, who was joint chair during Shapps’  tenure at the top of CCHQ.  It is not just the allegations of sexual harrassment, bullying, and extortion against Mark Clarke, but the question of who knew what, and when.

Although Shapps’ resignation letter says that “the buck” stops with him, his allies are privately furious at his de facto sacking, and they are pointing the finger at Feldman. They point out that not only was Feldman the senior partner on paper, but when the rewards for the unexpected election victory were handed out, it was Feldman who was held up as the key man, while Shapps was given what they see as a relatively lowly position in the Department for International Development.  Yet Feldman is still in post while Shapps was effectively forced out by David Cameron. Once again, says one, “the PM’s mates are protected, the rest of us shafted”.

As Simon Walters reports in this morning’s Mail on Sunday, the focus is turning onto Feldman, while Paul Goodman, the editor of the influential grassroots website ConservativeHome has piled further pressure on the peer by calling for him to go.

But even Feldman’s resignation is unlikely to be the end of the matter. Although the scope of the allegations against Clarke were unknown to many, questions about his behaviour were widespread, and fears about the conduct of elections in the party’s youth wing are also longstanding. Shortly after the 2010 election, Conservative student activists told me they’d cheered when Sadiq Khan defeated Clarke in Tooting, while a group of Conservative staffers were said to be part of the “Six per cent club” – they wanted a swing big enough for a Tory majority, but too small for Clarke to win his seat. The viciousness of Conservative Future’s internal elections is sufficiently well-known, meanwhile, to be a repeated refrain among defenders of the notoriously opaque democratic process in Labour Students, with supporters of a one member one vote system asked if they would risk elections as vicious as those in their Tory equivalent.

Just as it seems unlikely that Feldman remained ignorant of allegations against Clarke if Shapps knew, it feels untenable to argue that Clarke’s defeat could be cheered by both student Conservatives and Tory staffers and the unpleasantness of the party’s internal election sufficiently well-known by its opponents, without coming across the desk of Conservative politicians above even the chair of CCHQ’s paygrade.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.