Vince Cable and Danny Alexander's tug of war continues

After publicly disagreeing over the danger of a new housing bubble, the Lib Dem pair find themselves at odds over the end of the coalition.

The return of economic growth and Labour's fall in popularity has convinced the Lib Dems that there's little to be gained from an early exit from the coalition. The alternative of a confidence and supply deal with the Tories is viewed as the worst of all possible worlds. It would do nothing to placate those voters who despise them for propping up a Conservative government (indeed, this charge would have even more resonance), whilst antagonising those who believe they were right to enter coalition "in the national interest".

But during his day of dissent yesterday, Vince Cable used an evening fringe meeting to suggest that the coalition could break up before 2015. He said: "It's certainly possible. We are not at the stage of talking about that process. It is obviously a very sensitive one. It has got to be led by the leader. We have not yet had those conversations."

He later added on Newsnight that the position would be "collectively decided" closer to the election and that "all kinds of things are possible". But on Sky News this morning, Danny Alexander avoided such ambiguity in a calculated slap-down to Cable. He said:

This coalition will continue until the end of this Parliament as we promised for the very simple reason that we have a very big job to do - to clean up the economic mess that Labour left behind and entrench the recovery we are starting to see.

Vince was asked at a fringe meeting to speculate on a range of options. What I'm saying is that we have always made clear our firm intention is to make sure this coalition continues until the end.

We are not going to walk away from that job months or years before the end of the coalition government. We have big Lib Dem commitments to deliver.

lt's not the first time that Alexander and Cable, the party's two most senior economic spokesmen, have found themselves at odds during the Lib Dem conference.

After Cable warned that the government's Help To Buy scheme was in danger of creating a new housing bubble ("the danger lights have been flashing for some time") and suggested that its second phase should be limited to those regions where the market remains depressed, Alexander issued a stern rebuke, declaring that "We are a million miles away from a housing bubble in this country."

He added: "Right now the problem we face in the housing market is we are not building enough new homes and there are vast numbers of young people in work who could afford the monthly payments on their mortgage but simply can't afford the deposit they need to get a mortgage. The whole point of the second phase of the Help to Buy scheme is to help those people fulfil their aspirations and in doing so ensure there is more construction activity, that there are more new homes being built."

With these two clashes, the private tensions between Cable and Alexander, who many Lib Dems believe has been captured by George Osborne, are becoming increasingly public.

Business Secretary Vince Cable and Chief Secretary to the Treasury Danny Alexander. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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“We can’t do this again”: Labour conference reactions to Jeremy Corbyn’s second victory

Overjoyed members, determined allies and concerned MPs are divided on how to unite.

“I tell you what, I want to know who those 193,229 people are.” This was the reaction of one Labour member a few rows from the front of the stage, following the announcement of Jeremy Corbyn’s victory at the Labour party conference. She was referring to support received by his defeated contender, Owen Smith, who won 38.2 per cent of the vote (to Corbyn’s 61.8 per cent).

But it’s this focus on the leader’s critics – so vehement among many (and there are a lot of them) of his fans – that many politicians, of either side, who were watching his victory speech in the conference hall want to put an end to.

“It’s about unity and bringing us all together – I think that’s what has to come out of this,” says shadow cabinet member and MP for Edmonton Kate Osamor. “It shouldn’t be about the figures, and how many votes, and his percentage, because that will just cause more animosity.”

Osamor, who is supportive of Corbyn’s leadership, is not alone in urging her colleagues who resigned from the shadow cabinet to “remember the door is never shut”.

Shadow minister and member of Labour’s National Executive Committee (NEC) Jon Ashworth – not a Corbyn loyalist, but focusing on making the shadow cabinet work together – shares the sentiment.

Standing pensively in front of the now-empty stage, he tells me he backs shadow cabinet elections (though not for every post) – a change to party rules that has not yet been decided by the NEC. “[It] would be a good way of bringing people back,” he says. “I’ve been involved in discussions behind the scenes this week and I hope we can get some resolution on the issue.”

He adds: “Jeremy’s won, he has to recognise a number of people didn’t vote for him, so we’ve got to unite.”

The former Foreign Secretary Margaret Beckett, another MP on the NEC, is sitting in the audience, looking over some documents. She warns that “it’s impossible to tell” whether those who resigned from Corbyn’s shadow cabinet would be willing to return, and is concerned about talent being wasted.

“We have a lot of excellent people in the party; there are new people now in the shadow cabinet who have had a chance to show their mettle but you need experience as well as ability,” she says.

Beckett, who has urged Corbyn to stand down in the past, hopes “everybody’s listening” to his call for unity, but questions how that will be achieved.

“How much bad blood there is among people who were told that there was plotting [against Corbyn], it’s impossible to tell, but obviously that doesn’t make for a very good atmosphere,” she says. “But Jeremy says we’ll wipe the slate clean, so let’s hope everybody will wipe the slate clean.”

It doesn’t look that way yet. Socialist veteran Dennis Skinner is prowling around the party conference space outside the hall, barking with glee about Corbyn’s defeated foes. “He’s trebled the membership,” he cries. “A figure that Blair, Brown and Prescott could only dream about. On average there’s more than a thousand of them [new members] in every constituency. Right-wing members of the parliamentary Labour party need to get on board!”

A call that may go unheeded, with fervent Corbyn allies and critics alike already straying from the unity message. The shadow justice secretary Richard Burgon is reminding the PLP that, “Jeremy’s won by a bigger margin this time”, and telling journalists after the speech that he is “relaxed” about how the shadow cabinet is recruited (not a rallying cry for shadow cabinet elections).

“If Jeremy wants to hold out an olive branch to the PLP, work with MPs more closely, he has to look very seriously at that [shadow cabinet elections]; it’s gone to the NEC but no decision has been made,” says Louise Ellman, the Liverpool MP and transport committee chair who has been critical of Corbyn’s leadership. “That might not be the only way. I think he has to find a way of working with MPs, because we’re all elected by millions of people – the general public – and he seems to dismiss that.”

“If he sees it [his victory] as an endorsement of how he’s been operating up until now, the problems which led to the election being called will remain,” Ellman warns. “If we’re going to be a credible party of government, we’ve got to reach out to the general electorate. He didn’t say anything about that in his speech, but I hope that perhaps now he might feel more confident to be able to change direction.”

Corbyn may have called for cooperation, but his increased mandate (up from his last stonking victory with 59.5 per cent of the vote) is the starkest illustration yet of the gulf between his popularity in Parliament and among members.

The fact that one attempt at a ceasefire in the party’s civil war – by allowing MPs to vote for some shadow cabinet posts – is in contention suggests this gulf is in danger of increasing.

And then where could the party be this time next year? As Osamor warns: “We should not be looking at our differences, because when we do that, we end up thinking it’s a good thing to spend our summer having another contest. And we can’t. We can’t do this again.”

Anoosh Chakelian is deputy web editor at the New Statesman.