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.

Photo: André Spicer
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“It’s scary to do it again”: the five-year-old fined £150 for running a lemonade stand

Enforcement officers penalised a child selling home-made lemonade in the street. Her father tells the full story. 

It was a lively Saturday afternoon in east London’s Mile End. Groups of people streamed through residential streets on their way to a music festival in the local park; booming bass could be heard from the surrounding houses.

One five-year-old girl who lived in the area had an idea. She had been to her school’s summer fête recently and looked longingly at the stalls. She loved the idea of setting up her own stall, and today was a good day for it.

“She eventually came round to the idea of selling lemonade,” her father André Spicer tells me. So he and his daughter went to their local shop to buy some lemons. They mixed a few jugs of lemonade, the girl made a fetching A4 sign with some lemons drawn on it – 50p for a small cup, £1 for a large – and they carried a table from home to the end of their road. 

“People suddenly started coming up and buying stuff, pretty quickly, and they were very happy,” Spicer recalls. “People looked overjoyed at this cute little girl on the side of the road – community feel and all that sort of stuff.”

But the heart-warming scene was soon interrupted. After about half an hour of what Spicer describes as “brisk” trade – his daughter’s recipe secret was some mint and a little bit of cucumber, for a “bit of a British touch” – four enforcement officers came striding up to the stand.

Three were in uniform, and one was in plain clothes. One uniformed officer turned the camera on his vest on, and began reciting a legal script at the weeping five-year-old.

“You’re trading without a licence, pursuant to x, y, z act and blah dah dah dah, really going through a script,” Spicer tells me, saying they showed no compassion for his daughter. “This is my job, I’m doing it and that’s it, basically.”

The girl burst into tears the moment they arrived.

“Officials have some degree of intimidation. I’m a grown adult, so I wasn’t super intimidated, but I was a bit shocked,” says Spicer. “But my daughter was intimidated. She started crying straight away.”

As they continued to recite their legalese, her father picked her up to try to comfort her – but that didn’t stop the officers giving her stall a £150 fine and handing them a penalty notice. “TRADING WITHOUT LICENCE,” it screamed.


Picture: André Spicer

“She was crying and repeating, ‘I’ve done a bad thing’,” says Spicer. “As we walked home, I had to try and convince her that it wasn’t her, it wasn’t her fault. It wasn’t her who had done something bad.”

She cried all the way home, and it wasn’t until she watched her favourite film, Brave, that she calmed down. It was then that Spicer suggested next time they would “do it all correctly”, get a permit, and set up another stand.

“No, I don’t want to, it’s a bit scary to do it again,” she replied. Her father hopes that “she’ll be able to get over it”, and that her enterprising spirit will return.

The Council has since apologised and cancelled the fine, and called on its officials to “show common sense and to use their powers sensibly”.

But Spicer felt “there’s a bigger principle here”, and wrote a piece for the Telegraph arguing that children in modern Britain are too restricted.

He would “absolutely” encourage his daughter to set up another stall, and “I’d encourage other people to go and do it as well. It’s a great way to spend a bit of time with the kids in the holidays, and they might learn something.”

A fitting reminder of the great life lesson: when life gives you a fixed penalty notice, make lemonade.

Anoosh Chakelian is senior writer at the New Statesman.