Cutting too soon will aggravate unemployment says Cable

Responding to the Bank of England’s latest quarterly bulletin and its warnings of job market uncertainty, Vince Cable said:

“This is strong confirmation from the Bank of England that the British economy is still weak.

“Although unemployment is not as bad as it could have been given the extent of the economic collapse, there is still worrying uncertainty.

“The clear implication of the Bank’s analysis is that if any Government tries to cut back too soon, it will aggravate unemployment, making the deficit worse and compounding the country’s problems.

“Each party must set out a clear process of what and how it will cut to tackle the deficit, but when this starts must be guided by economics, not political dogma.”

Nick Clegg speech to Liberal Democrat Spring Conference

Shall I tell you the one phrase that bothers me more than any other? It’s this.
“That’s just the way things are”.
No. The way things are is not the way they have to be.

We do not have to live in a country where the poorest pay the biggest chunk of their income in tax. We do not have to live in a country where politics is the plaything of wealthy donors and corrupt MPs. We do not have to live in a country where the banks can profiteer at the expense of everybody else and our climate is in jeopardy. We do not have to live in a country where children’s chances are determined more by their parents’ background than by their own hopes and dreams.

There is a better way.

Imagine instead a primary school with classes of just 20 pupils. Imagine being able to take home the first £10,000 you earn completely free of income tax. Imagine a generation of young people finding work in thriving local manufacturing companies. Imagine being able to sack corrupt MPs, instead of just shouting at them on TV. Imagine knowing your vote counts. Imagine it.

These are not dreams. They are ambitions. Our ambitions. And they are ambitions which can come true if we do things differently.

But we will never do things differently as long as the job of governing this country remains a game of pass-the-parcel between the two old parties. For 65 years now we have had Labour and Conservative governments. First the blue team. Then the red. Then blue, then red, and yet nothing really changes. The same old promises, always broken.


No wonder people feel let down. No wonder people feel they shouldn’t expect too much. The old parties have drained our ambition to do things differently. They seem to say: we’ve been in charge for decades – don’t now start hoping for more. That’s just the way things are. No.

This year’s election is a huge opportunity. Everybody knows, in their heart of hearts, that we need real change. Everybody knows that the way we got here is not the way out.

The time to believe in our ambitions starts today. The time to do something different in politics. The time to fight for a fairer Britain. The time to bring real change. It starts today. Change that works for you.

Something really important has been happening in our politics for years. Something big – but gradual – so you wouldn’t notice it from day to day. There is a vast and growing army of people who look at the two old parties and say “no thanks.” People who, like me, like you, want something different.


In 1951, only 2% of voters chose someone other than Labour or the Conservatives. At the last general election, it was 32%.

Now, a gimmick here, or a lucky break there may boost Labour or Conservative poll ratings for a few weeks or months, but it cannot, and will not reverse the trend. Who seriously believes that the British people, offered so much choice in every aspect of our daily lives, will ever again settle for a two-party system? If you have two parties, you only ever have two ideas. Actually that’s on a good day. Most of the time they can’t even rustle up a single good idea between them.

Labour: the party of the many. The many disasters. You know their new slogan: a future fair for all.
If that sounds familiar, that’s because they’ve used it before. Seven years ago. Well based on what’s happened since then: it isn’t a slogan – it’s a warning. It’s like advertising a second trip on the Titanic. Gordon Brown’s unsinkable economy. Actually, there is one thing I have to give Gordon Brown credit for: He handled Piers Morgan a lot better than I did.

As for the Conservatives: the world’s first offshore political party. It used to be a British party. Now it's a wholly-owned subsidiary of Lord Ashcroft, a man who collects tax havens the way some people collect beer mats. How can David Cameron claim to clean up politics, when he can’t even clean up his own party chairman? The label still says Made in Britain, but the money says Made in Belize.

With these two old parties, it is a dismal choice between the party of the few and the party of no-one. A choice between the wrong direction and backwards. They haven’t noticed people are tired of being told there are only two answers to every question. They haven’t noticed people are ready for something new. Ready for something different. And ready to make it happen.

We have had a great weekend. Coming together, here in Birmingham. To vote through the four big promises that will be the heart of our manifesto. Fair taxes that put money back in your pocket. A fair start at school for every child. A fair economy: protecting and creating jobs by reforming the banks and investing in a green future. And a fair deal for you from politicians, cleaning up and clearing out the rotten old system.

We have been rigorous in focusing ourselves on these four pledges. We understand that the days of shopping list manifestos are over. The economic and financial circumstances mean we must choose. To focus on what is essential, and not promise more than we can afford. The party which will win the argument during this General Election will be the party which strikes the right balance between generosity and restraint, hope and realism, spending and saving.

That is why I make no apology in stating bluntly that we will never take risks with the public finances. Whether we like it or not, we will have to fix the mess Gordon Brown has made. Without sanity in spending, we won’t be able to protect our public services. We won’t be able to give our brave troops the equipment and support they so desperately need in Afghanistan. We won’t be able to provide the fairness we want for all. The question facing us is not whether to cut the deficit. It is how and when.

Everyone who’s ever cut back a tree knows there are many ways to do it. You can cut back badly and kill the tree. Or you can do it in a way that helps the tree to flourish in the future. Encouraging growth in a new direction. So as we reduce the deficit. We must cut in a way that does not make the country less fair. Or less green. That does not jeopardise front line services in the NHS and schools we all depend on. And does not choke off recovery.

Labour is in denial about the need for cuts. This week Alistair Darling and Gordon Brown confirmed the pre election budget won’t include any more details on how to bring the deficit under control.
No courage. No honesty.
Just a miserable attempt to save their own skins.

Meanwhile the Conservatives have started to make threats. David Cameron, George Osborne and Ken Clarke marched into the City of London the other day and declared that if voters didn’t give them the result they want, the markets would tear the house down.
Cynical. Desperate.

The Tories think they’re entitled to victory – the moment they feel it slipping from their grasp, they start lashing out. It’s a political version of a protection racket: do what we want, or else.

Liberal Democrats are, I believe, the guarantor of good sense. After all, we are the party of Vince Cable. We are the guarantor – whatever the outcome of the election – that no risks will be taken with Britain’s financial position. Liberal Democrats have gone further than any political party in identifying cuts – we will be setting out a programme of savings of £15bn a year by 2012. From ending government contributions to Child Trust Funds to removing the top 20% of claimants from the tax credit system. From cancelling the ID card programme to abolishing the Government Offices for the Regions. We have put together, line by line, the most substantial and deliverable programme of deficit reduction in British politics. And we have taken the bold step of cutting back, dramatically, our proposals for new spending.

Postponing ideas that have long been close to our hearts but which are not immediately affordable. So we can put two thirds of the money we save straight into reducing the deficit.

It is the first time in our history that Liberal Democrats have ever set out a plan for net reductions in government spending. But I am the first to admit that it does not go far enough. There will be more to do, and we will have to find these savings together, as a nation. Our plan is a down payment – a declaration of intent. Your guarantee that Liberal Democrats are putting Britain’s financial future at the heart of our plans for government.

People often ask me what the Liberal Democrats will do after the General Election. I’m flattered that people think I can predict the future. The newspapers certainly think they can. Some days I read we’re planning a deal with Labour. Some days that we’re planning a deal with the Conservatives. Other days that we’ll refuse to talk to anyone at all. Yet, when all the speculation is said and done, I keep coming back to some simple truths:
I am not the kingmaker.
The 45 million voters of Britain are the kingmakers.
They give the politicians their marching orders, not the other way round.
It’s called democracy – and I kind of like it.

Almost 1 in 4 voters chose the Liberal Democrats at the last election. If that increased to 1 in 3, we could lead the next government. This election is a time for voters to choose, not a time for politicians to play footsie with each other. The party which gets the strongest mandate from the voters will have the moral authority to be the first to seek to govern. And voters are entitled to know what Liberal Democrats will do – in whatever situation we find ourselves in.


This weekend we’ve given the answer:
We will give you fairer taxes. We will make sure your child gets the fair start in life they deserve.
We will create a new, fair economy where we are no longer held hostage by the greed of bankers in the City of London. And we will give you a fair, open and transparent politics after the gross betrayal of the expenses scandal. It really is as simple as that. No-one can guarantee what the election result will be. But I can guarantee what we will always fight to deliver.

And if you like what we say. If you share our values. If you want fair taxes, a fair start in life for your child, a fairer economy, and a new, fair politics. Vote for it.

Tax

One of the biggest changes we offer is to your tax bill. My philosophy on tax is simple. A fair tax system is one that rewards hard work, enterprise and initiative. It penalises pollution and other threats to the common good. It bears down on unearned wealth. That is what we will deliver.

Under the Liberal Democrats, no-one will pay tax on the first £10,000 they earn. Let me repeat that: Because this is one of the most substantial changes to tax that a party has ever offered at a General Election. Under the Liberal Democrats, no-one will pay tax on the first £10,000 they earn.

We’re not talking about tinkering or tweaking. We’re talking about fundamental, substantial and irreversible reform. Under the Liberal Democrats, no-one will pay tax on the first £10,000 they earn.

3.6 million people will be freed from paying tax altogether. Tens of millions more on low and middle incomes will get a tax cut of £700 back in their pockets. A real change to deliver lasting tax fairness for everyone.

The Conservatives may want tax cuts for millionaires. We will deliver tax cuts for millions.

But it has to be paid for. No-one is going to fall for a false promise of a giveaway. So we will make five simple, but substantial changes to pay for this tax cut. One: Equalising pensions tax relief so top earners no longer get more than everyone else. Two: Equalising Capital Gains Tax with Income Tax so people who make their money trading shares and properties pay the same rates as everyone else. Three: An increase in aviation taxes. Four: A crack down on tax avoidance. And finally – a new mansion tax on properties worth over £2m. This is one tax even oligarchs and billionaires will not be able to avoid. You can’t put a mansion in a briefcase and take it to Belize.

Just imagine the difference this change would make. You know anyone working full time on the minimum wage pays more than a £1000 in income tax every year? Under the Liberal Democrats, their tax bill will plummet to less than £6 a week. They’ll be £700 better off. £700 to pay for children’s school clothes, to fix the car, to pay the heating bill.

That is change that works for you.

Children

Liberal Democrats will give every child the fair start they deserve. By reducing class sizes and increasing one to one tuition in our schools. Children have to be nurtured and cherished, right from the start.

Miriam and I know this as parents of three lovely little boys. We see for ourselves that what happens to our 8 and 5 year old boys in the classroom has a dramatic effect on their enthusiasm to learn and their self confidence which will shape them for the rest of their lives.

Mind you, I think both Miriam and I were a little surprised when our eight year old son declared the other day that he had a plan for winning the election. He’d been counting up his pocket money, and suggested we could pay everybody off to vote for us. It’s not so much the suggestion I mind, it more that he’s clearly giving his best ideas to Lord Ashcroft first.

But as much as children depend on us today. We are going to depend on them for far longer. Think about a child in your local primary school, doing experiments with egg cartons and elastic bands. That child could be the inventor of a cure for cancer which saves your life thirty years from now.

We don’t know what the future holds. We don’t know what our children will achieve. All we know is that our country is still not a place truly fit for them to grow up in.

Labour’s target for school achievement is to ensure that at least three out of every 10 children in a school get five good GCSEs. Three out of every 10. Imagine being in a class where just passing means you are the exception. We are teaching our children to drop their expectations. Telling them to aim low.

It has to change.

Liberal Democrats are the only party promising new investment in our schools. We’ll be putting more money, £2.5 billion every year, into schools to pay for more teachers, better discipline and catch-up classes. An average primary school could cut class sizes to just 20, ensuring children starting out at school have the personal, nurturing relationship with their teacher they need. An average secondary school could put the money into catch-up classes for 160 pupils. Making sure no child is ever left behind.


That is change that works for you.

Economy

The recession has hurt millions of families. But the problems run deeper than just the immediate crisis. For too long, a succession of Conservative and Labour Governments have been obsessed about looking after just one square mile – the City of London. It’s time to invest in the other 100,000 square miles of Britain. Creating jobs and growth that lasts for every town, city and village of this country.

After the economic crisis that rocked the world. We must not rebuild the fortresses of old. We must use this as an opportunity to build something new. Not least to ensure we can pass on to our children a planet worth living on. We now know that the next few years are probably our last chance to avert unstoppable climate change. This is not a problem, it is an emergency. It must guide everything we do as we rebalance our economy.

Growth that lasts does not threaten our children’s future. It recognises that our planet is a gift that must be cherished. That tomorrow is our responsibility as much as today.

And growth that lasts does not leave an underclass behind. It brings everyone along, sharing prosperity – because the more people are included. the more people are enabled to seize opportunities, the more prosperity there is for all.

But we cannot have a new kind of growth with the old kind of banks. It is time to break them up.
Bring back competition. Bring back diversity. Bring back building societies.

And until we do it we should insist that banks pay a premium on their profits to the taxpayers who have bailed them out. We will separate low risk utility banking from high risk investment finance once and for all. So banks never again take insane risks which jeopardise your everyday savings.

Some people say it is impossible to split the banks like this. They’re usually – you guessed it – the bankers themselves. The governor of the Bank of England says it is not only possible but essential to break up the banks. He’s right. They’re wrong. Only the Liberal Democrats say: The banking industry, no industry, must ever again occupy such a privileged position that it can hold a gun to the head of rest of the economy. Never again.

But reforming the banks should not be an act of retribution. It is about getting money flowing to the thousands of businesses starved of credit today. Without support from banks, companies go bust, and the jobless remain without hope.

I was staggered when I heard that RBS, a bank we own, was lending millions of pounds to help Kraft buy Cadbury. A great Birmingham company. RBS was funding this deal which everybody knew would cost jobs in Britain. While small business customers of this very bank were being turned down for loans or charged extortionate rates. This was a scandal. And Labour let it happen. When we bailed out the banks: Did you ever imagine your money would be used to put British people out of work? Only Liberal Democrats say: never again.

Once the banks are lending again. We can turn our attention not just to protecting jobs, but to creating new ones. In our first year in office, we will use the money from that banking levy. And the money from reforming tax credits. To create as many as 100,000 jobs in green industries. Kick-starting the economy on a new, sustainable footing.

I was standing in a shipyard on the Tyne just a few weeks ago. It was deserted. And I thought back to the days gone by when it would have been humming with activity. It’s heartbreaking to think of that decline. And the devastating impact it had on whole communities.

But it is inspiring to imagine these old shipyards. Once the pride of Britain. Coming back to life as a hub for building the vast new turbines needed for offshore wind and tidal energy. Helping to power Britain and Europe with clean, safe energy for all.

Britain used to lead the world. We built ships. We designed railways. We laid the first telegraph cables across the oceans. This is the nation of Alexander Graham Bell, the inventor of the telephone. Of Isaac Newton, who made modern science possible. Of Isambard Kingdom Brunel, the greatest civil engineer in history.

We have to harness that inventive spirit once again. We have been blinded for too long by the glitz of the financial services sector. Blinded to the real, solid virtue of making things. It has to change. Under the Liberal Democrats, it will change. No longer just betting on things. We will start Britain building things again. That is change that works for you.

Politics

But there’s something standing in the way of change. Our political system. All the pomp and ceremony of our Parliament. All the adorably daft rituals. Have been camouflage for corruption.

It is just plain wrong that a government elected by the votes of just 22% of people can rule however it likes. It is just plain wrong that a government can commit us to an illegal war against the will of the people. It is just plain wrong that some MPs were so out of touch with the basic principles of right and wrong that they thought it was ok to do up house after house at taxpayers’ expense, flip them and flog them off for a profit.

People say all politicians are the same. They are not.

Of course, Liberal Democrats are not perfect. But no Liberal Democrat MP “flipped” their home in this way. None of our outer London MPs even claimed a second home allowance. And it was Liberal Democrats who fought against Tory and Labour attempts to keep the whole scandal hidden in the first place. So don’t let them tell you we are all the same because it isn’t true.

Liberal Democrats are the only party that understands expenses were just the tip of the iceberg. Our whole political system is a mess. David Cameron and Gordon Brown talk about political reform. But they won’t even contemplate the really radical changes we need.

Only Liberal Democrats will get big money and corrupt donors out of politics altogether. Change the voting system to abolish safe seats and make every vote count. Reduce the number of MPs by 150.
Reverse the tide of decades of centralisation. Devolve power over the police and NHS to local communities. Pass a freedom bill to protect our hard-won rights and liberties from the whims of government ministers. And give constituents the right to sack corrupt MPs.

That is change that works for you.

Conclusion

Four steps to a fairer Britain:
Fair taxes.
A new, fair start for all children at school.
A rebalanced, fair and green economy.
And clean, open, fair politics.

For Gordon Brown, change is what you promise when you want everything to stay the same. For David Cameron, change stops on May 7th. It’s change for him, not change for you. We are different.

I want to warn you about something that is coming in the next few weeks. We are going to hear a nonsensical claim from the two old parties. Designed to scare people into voting against their best interests. The Conservatives will say: vote Lib Dem... get Brown. Labour will say: vote Lib Dem... get Cameron.

Don’t believe it for a second. They are wrong.
Vote Lib Dem… get change.
Vote Lib Dem… get fairness.
A vote for the Liberal Democrats is not a vote for anyone else.
It is your guarantee of real change that works for you.

A vote for the Liberal Democrats is a commitment to hope and opportunity.
It’s a vote that says:
I want government to be honest and open.
I want a green economy.
I want fairer taxes.
I want a fairer future for my children and for all our children.

I know there are many people who listen to the Liberal Democrats and really like what they hear.
But you worry that your vote would be wasted. You worry that your choice won’t make enough of a difference. So you are thinking of giving your vote to someone else. Some people are thinking of holding their noses and voting for Brown just to keep out the Conservatives. I say to you: don’t do it.

Some people are thinking of holding their noses and voting for Cameron just to get rid of Labour. Don’t do it. You have a once in a generation opportunity for real change.
A wasted vote is one that throws that opportunity away.
A wasted vote is one for a party that is stuck in the past.
A wasted vote is one for a party you don’t believe in.

How do you want to feel when you wake up on May 7th and hear the news? Would you smile at the prospect of five more years of Gordon Brown? Would you be thrilled if a Conservative government was now in charge?

If the answer is no, then don’t give them your vote. If you vote for less… you will get less. If you compromise on them… they will compromise on you. Just good enough – is not good enough any more.

When you think about who to vote for remember that the future of your country is at stake. Whatever you do… do not settle for the way things are.

Be demanding.
Vote for what you believe in.
Vote with your heart.

If you once voted Labour but have lost hope. If you once voted Conservative but don’t know what they stand for any longer. If you have given up voting altogether because nothing ever seems to change. Vote for something different this time.

Vote Lib Dem: get fairness.
Vote Lib Dem: get change.
Vote for what you believe in… or you will wake up on May 7th facing another five years of more of the same.
This is your chance.
This is your opportunity – for the sake of our future, do not waste it.

Choose the Liberal Democrats.

Liberal Democrats back green stimulus package

The plans will play a vital part in a fair recovery that locks in investment and ensures a path of low-carbon growth.

The plans for a green economic stimulus package are a core part of the Liberal Democrat election manifesto and include:

·        Immediate investment to expand our green energy infrastructure

·        Bringing hundreds of thousands of empty homes back into use

·        Insulating schools and other public buildings

·        An ‘eco-cashback’ scheme to reward people who make energy efficiency improvements in their homes

·        A National Infrastructure Bank to promote long-term investment in sustainable public transport and renewable energy

Commenting, Liberal Democrat Shadow Energy and Climate Change Secretary Simon Hughes said:

“The Liberal Democrats have set out a blueprint for a fair economy that’s fit to last.

“A green stimulus package will help boost investment in clean energy, reduce fuel bills and create thousands of new jobs.

“Labour and the Tories can’t be trusted to deliver the green growth we need.

“Only the Liberal Democrats have bold and credible plans to rebalance the economy and put Britain at the forefront of this vital transition.”

Liberal Democrats pass plans to clean up politics

The proposals include:
 
 - A fairer voting system
 
 - A requirement for those who stand for Parliament or sit in the House of Lords to pay tax in Britain
 
 - A fully elected second chamber
 
 - The right for voters to sack their MP
 
 Commenting, Liberal Democrat Manifesto Chair, Danny Alexander said:
 
“Our broken political system desperately needs to be cleaned up.  Public confidence in politics is at an all time low, and the way the country is governed needs urgent reform.  
 
“The Liberal Democrats have passed plans today to make politics fairer, local and more transparent.  
 
“Labour has had 13 years to change our broken politics, and it’s failed to do so.
 
“Only the Liberal Democrats would end safe seats, reform the voting system and give local people a real say over how their neighbourhoods are governed.”
 

Chris Huhne speech to Liberal Democrat Conference

The full text of the speech is below:

Conference, I have been in our party for 29 years – almost a generation – and I am just as angry at our unfair voting system today as I was when I joined. 

The first general election I fought was in 1983  - I lost three times before I started winning – when we won almost as many votes as Labour but just a tenth the seats.
 
That election night, I knew this is not right.
 
It is not fair.
 
It is no way to run a democracy.
 
Since then, the system has got even worse. 
 
This Labour government has won more than half the MPs with just a third of those who voted, and a fifth of those entitled to vote.
 
No majority government has ever been elected with less support.
 
We have a parliament that reflects our nation as badly as a distorting fairground mirror, a muddle of bulges.
 
This voting system means that we can predict now about half of the MPs in the next parliament.
 
The seats are so safe that the only real contest is for the party ticket.
In safe seats, the general election is just a charade.
 
And we know about human nature.
 
Give someone a job for life, and they will take advantage.
 
Dip their fingers in the till.
 
Clean a moat.
 
Buy a duck house.
 
Claim for a non-existent mortgage.
 
MPs in safe seats were three times as likely to have fiddled their expenses as MPs in battleground seats.
 
Remember not a single Liberal Democrat MP flipped their home.
 
Not a single Lib Dem MP avoided capital gains tax.
 
Not a single Lib Dem MP in London claimed a second home allowance at all.
 
I don’t say we got everything right, but our respect for public money is bred by winning our seats vote by hard-won vote.
 
It’s why we have not been involved in the worst expenses abuses.
 
It is why Liberal Democrat MPs claim lower personal expenses than Labour or Tory MPs.
 
It is also why the same discipline should apply to every MP.
 
Let’s abolish safe seats.
 
Labour has taken a teeny step in the right direction by arguing for one-two-three voting.
 
Talk about deathbed conversions.
 
Thirteen years doing nothing, and it takes the spectre of defeat to spur them to do anything.
 
But so little, so late.
 
True, preference votes remove the need for tactical voting.
 
They let people vote honestly for who they want, without fearing that they will let in who they hate.
 
But they still leave us with far too many safe seats, and the political parties will still decide who stands and wins in Toffshire South or Labour rotten borough North.
 
Instead, our Liberal Democrat system will give every voter the choice of two or more candidates for each party in a three to five MP constituency.
 
Of course, you could still vote to change the party in power.
 
But you could also keep the same party, but vote for another MP.
 
Voters will have the power to vote for the person as well as the party.
 
In Ireland, the professional politicians hate this system.
 
Why?
 
Because a third of those who lose their seats lose to members of their own party, not the opposition.
 
For the first time, every MP will have a strong incentive to answer the letters of their constituents, take up cases, champion local interests and causes.
That's the real local link.
 
Nor does a representative parliament mean weak government.
 
Greece is the country in most financial trouble, and yet it always has single party government.
 
Britain is next in line, and so have we since 1945.
 
So which part of strong government do David Cameron and Gordon Brown most like?
 
The boom and the bust?
 
The legislative diarrhoea?
 
Or the illegal war in Iraq?
 
Take crime.
 
It is not a sign of strength that the Government has created 4300 new criminal offences since 1997.
 
We do not need these useless laws.
 
Some 60 criminal justice bills.
 
Nine immigration bills.
 
This is the political equivalent of attention-deficit disorder.
 
We need less law and better law.
Law that is properly scrutinised, settled and long lasting.
 
We need a simple penal code that magistrates, police officers and offenders can understand.
 
And we need a focus on what works to cut crime.
 
Liberal Democrats will take no lessons from the Tories or Labour on crime.
 
In Lib Dem council areas, preventive measures have pushed crime down further and faster than anywhere else.
 
In Tory areas, crime is down since the peak by 16 per cent.
 
In Lib Dem areas, it is down 20 per cent.
 
Imagine what more we could do in Government.
 
Labour and the Tories love to posture about tough penalties.
 
But penalties cannot make a blind bit of difference when only one in a hundred crimes ends in a court conviction.
 
The real deterrent is the fear of getting caught, and that means more police on the beat.
 
We are the only party committed to raising police numbers.
 
That means better policing by raising standards.
 
It means prison that reforms offenders, and does not enroll them in a college course in crime.
 
**
 
Whether on crime, or taxes, or the economy, fair politics must surely mean a battle of ideas, not bank balances.
 
As Nick has pointed out, the Ashcroft scandal shows why we must clean up party funding.
 
A billionaire baron from Belize has bought the Tory party like a banana republic, and it stinks.
 
Ashcroft made solemn and binding undertakings to become a permanent resident, and then broke them.
 
He does not pay full British taxes, but he thinks that he should pass laws for those of us that do.
 
Ashcroft wants to run the club, but not pay the sub.
 
This scandal tells us a lot about David Cameron.
 
He would not stand up to Ashcroft.
 
We named and shamed Ashcroft as a non-dom at prime minister’s questions, but even then Cameron failed to ask his over-mighty baron whether he was keeping his promises.
 
If that is the smack of strong management, heaven help the country if Cameron wins.
 
If he can’t clean up his own party, he is not fit for number 10.
 
We have heard a lot about bullying recently.
 
Real bullies sack the weak and suck up to the strong.
 
This was Cameron’s big test of character and leadership, and he failed.
 
He’s rattled.
 
He’s rumbled.
 
And he’s humbled.
 
And fair politics means local politics too.
 
Less power for the centre.
 
More power for Edinburgh and Cardiff.
 
More tax power for communities across England.
 
The business rate back to councils as a first step.
 
Elected health boards.
 
Elected police authorities with real powers to set the precept, and sack the Chief Constable.
 
Only local power can unleash the creativity that we need in tough times.
 
There are two parties in this election
arguing about changing faces and changing places, not changing Britain.
 
What matters is not playing ministerial musical chairs, but transforming the whole way we do politics.
 
By making every vote count, wherever you live, we will give every person in our nation a voice in its destiny.
 
Everyone, however rich or poor, low or high, will have their proper say.
 
You cannot build a fair society on an unfair voting system.
 
In this election, we have the chance of a generation to remake our politics and our society.
 
Don’t miss it.
 
Don’t mess up.
 
Don’t wake up on 7th May saying
“I wish I’d done more”.
 
Wake up saying
“Thank God I did enough.
We’ve won the power to build a fairer Britain.”

Liberal Democrats back fairer taxes

These plans would see the average person’s income tax bill cut by £700. Pensioners would be £100 better off and 3.6m people would no longer have to pay any income tax at all.

The party’s tax plans will be paid for by closing tax loopholes, making polluters pay and introducing a ‘mansion tax’ on homes worth over £2m.

Commenting, Liberal Democrat Shadow Chancellor, Vince Cable said:

“It’s high time that this country had a tax system that is fair for all.

“Gordon Brown created a tax system that has some of the lowest earners paying hundreds of pounds in taxes that they can ill afford while the very wealthiest treat tax as if it’s optional.

“For their part, the Tories flail around in confusion over their marriage tax plans and can only commit to a tax cut for millionaires.

“The Liberal Democrat plans are the most radical, far reaching tax reforms in a generation and embody everything that we stand for: fairness, protecting the environment, rewarding hard work.

“It is right to ask those with the broadest shoulders to bear a little more of the burden so that millions of people on normal earnings get the break they need.

“We all know that the country is in for some tough times ahead. But we believe that it is simply not possible to address the problem of an unsustainable budget deficit without parallel action to rebalance the tax system and eliminate the unfairness at its core.”

Sarah Teather speech to Liberal Democrat Spring Conference

The full text of the speech is below:

Conference, I blame the Labour party for disengagement with politics. 

Sure, expenses has been a total disaster, and has made people angry.

But actually, I don’t think that is where the rot set in.

It set in in 1997.
Just after the election.
It started the day Tony Blair got in his ministerial car and travelled to one of the poorest estates in the country and pledged to stand up for the forgotten people.

It started, in the euphoria and relief that we all felt when we finally saw the back of the Tories.

It started in the lonely journey of the loyal Labour voter, who stuck with them in the dark days of the Tories, and who heaved a sigh of relief when Labour came to power.

It started then, because every promise Blair made that day has since been broken, discarded, or left to whither away.

Labour forgot the forgotten people.
They forgot the people who elected them.
They forgot the people who needed them most.

And I am left wondering what the point is of a Labour Government.

They raise taxes on the poor.
They let the poorest children fail at school.
They stand idly by while families are destroyed by housing misery that they could easily fix.

Labour’s betrayal is where the rot set in.

The record speaks for itself.

1.8 million families languishing on housing waiting lists.
Three quarters of a million families in severe overcrowding.
One in ten children in my constituency in temporary accommodation.

I have spoken to families in my constituency with TB.
One family member picks it up on their travels, and when you live in an overcrowded damp Victorian hovel it isn’t long before the whole family gets it.

I have parents sharing beds with 8 and 9 year old children, because there is nowhere for the other child to sleep.

6 people in two bedroom flats,
Children with autism having to sleep in the living room with their brother,
Marriages devastated.
Education ruined.

How do they get away with this? For 13 years.

This is the Labour party.
This is what they have become.
This is their legacy.

The truth is, that housing is a deeply personal issue.
For too long, it has been swept under the carpet.
Until the Government feel they are losing votes over it, they think they can afford to keep on ignoring it.

A few weeks ago, the London Evening Standard began a campaign highlighting the hidden misery of thousands of Londoners stuck in poverty and poor housing.
It felt like a chink of light.
Thank God, finally a newspaper campaigning on housing.

We need housing on every front page.
It should be a political issue.
It should decide how people vote.
Labour must not be allowed to get away with this.
We will not allow Labour to get away with this.

Under Nick Clegg, we will be the only party going into this election promising a billion pound investment in this country’s housing stock. Because we understand that housing affects everything.

You can’t fix antisocial behaviour, or under performance at school, if children have nowhere to work or play.

It is no good having a great health service if the real cause of depression, chest disease, high blood pressure and goodness knows what else is actually the hideous stressful condition in which people are living.

This is fundamentally about fairness. Fairness for the poorest, fairness for our children, fairness for families.

Liberal Democrats, if we don’t make this case, nobody will.

We certainly won’t hear it from the Tories.

The Tories don’t know what they are talking about.
They have no idea how the other 90% live.
Scratch the surface and the old Tory party is alive and well.

A couple of weeks ago they issued a press release claiming that fifty percent of teenage girls in deprived areas are pregnant.
The figure was wrong. It was actually 5%.
But no-one in Conservative central office questioned it because it fitted with their stereotypes about poor people.

Just as it did when Chris Grayling claimed our inner cities are all like the US show the Wire.

They will do anything, say anything, to peddle their ‘Broken Britain’ slogan.
The Conservative party love to demonise the poor.

No, the Tories think the only way to solve the housing crisis is to change the law so that it is easier for big developers to stuff vulnerable families in to houses the size of shoe boxes.

That, and persistent rumours about their secret plans to whack up rents for social tenants to private market levels.
That would be a disaster.

Last year, a young woman came to visit me.
She had been on the housing waiting list for years.
In that time, she had taken a degree and was absolutely desperate to work full time.
But she couldn’t afford to work, because if she did, she would lose the benefit that paid her exorbitant private rent.

She had done a calculation of all the money she had received in housing benefit while she had been waiting.
Look – she said – they could have built me a house!

If you abolish subsidised rents for Council and housing association homes, all that is going to happen is that many more people will end up on housing benefit, and many fewer people will be able to work.

Put poor people into worse housing, and make them pay more for it.
That’s it. That’s the Tory big idea.
 
The Tories have been colluding in keeping housing off the political agenda because they have nothing to say.

What frustrates me so much is that the Government can do something about the appalling cases I see in my advice surgeries every week.
This isn’t an insoluble problem.
It isn’t free, and it can’t be fixed overnight.
But it can be done.

There are things we would do. Things we would do now.

While millions of families wait for housing, 650,000 properties sit empty in England alone.
Empty, ignored and slowly falling to pieces.
Everyone in the country can tell you about a house near them that no one lives in.
It is a scandal that the Government just lets these precious homes rot.

Empty properties are a scar on our communities.
They invite squatting, antisocial behaviour, and bring down the whole street.
Just think how a family living with overcrowding feels when they see a property all boarded up.

It’s time we made use of the homes we have.

The Liberal Democrats will invest £1.4billion in bringing a quarter of a million of these homes back into use.

Think what that money could achieve.
50,000 builders, joiners, plumbers, electricians, carpenters back in work.
A shot in the arm for the construction industry.
Streets across the country smartened up.
Squatters replaced by families desperate for a home.

That would be the difference under the Liberal Democrats.

The alternative doesn’t bear thinking about.

When demand outstrips supply, prices go up.
That’s basic economics – even George Osborne could grasp that.

If we can’t keep up with housing demand as we come out of recession, prices go up, people borrow more than they can afford, and bang, we are right back where we started.

If we lose all our construction workers in the recession because there is no work for them, we’ll never keep pace with demand.

It’s as if the government haven’t learned a thing from the past two years.
Investing in more housing will protect the economy and save a generation.

By making this billion pound promise the Liberal Democrats throw down the gauntlet to Labour and the Tories to do the same.

Liberal Democrats, we are the only party heading into this election promising to invest new money in housing.

We need to win so that we can deliver the housing people so desperately need.

The 1.8 million families languishing on the housing waiting list haven’t won under Labour.

The young couple still forced to live with their parents haven’t won under Labour.

The family living six to a room in conditions akin to Victorian England have not won under Labour.

Perhaps it was inevitable that the Labour party would forget the forgotten people.
The collectivist roots of the Labour party lends easily to sweeping individual rights under the carpet in the name of the supposed greater good.
The trouble is that the only greater good the Labour party still believe in is winning their fourth term.
They have forgotten that winning isn’t just about winning.

We won’t forget the people who elected us because that is the nature of our politics. People, individuals, their stories, their concerns is at the heart of what Liberal Democracy is about.

We will win for the people who need us most.
And we will win where no one expects us to.
We will win because we can give people hope again.

Hope that things can change.
Hope for a fairer country.
Hope for real justice for those stuck at the bottom.

We can re-ignite hope in the millions of people who have given up on the power of politics to change their lives.

We have the policies, the principles and the passion to turn a disillusioned voter into a positive vote for change.

And that’s why, when we are out day after day, knocking, stuffing, delivering, phoning.
When we are using energy even we didn’t know we could muster, that’s what keeps us going.

Conference, Labour have failed and the Tories haven’t really changed.
This is our time.

We must deliver.

Our job is to go out there and persuade people that voting changes things.

So let’s go out and do it.

Nick Clegg's Conference Leader's Q & A

 

We need a new UN body to break the climate deadlock says Hughes

The authority would sit in permanent session and bring coherence to efforts to reach a binding and enforceable agreement on emissions cuts.

The motion passed by Conference also:

• Called for a floor price for carbon to stabilise the carbon market and promote higher levels of investment in the low carbon economy
  
• Reaffirmed the Liberal Democrat commitment to a 40% emissions cut by 2020 and the goals of the 10:10 campaign

Commenting, Liberal Democrat Shadow Energy and Climate Change Secretary, Simon Hughes said:

“There’s no question that Copenhagen was a failure of international leadership. But it also exposed the weakness and fragmentation of a bewildering institutional framework.

“Getting a good deal on climate change will be all but impossible without a strong world environment body with the clout to bang heads together.

“The current mishmash of institutions, agreements and treaties is diluting efforts to make the politics fit the science.

“If the WTO can adjudicate on trade disputes, then surely the time has come for a UN body that can break the climate deadlock.”

Vince Cable speech to Liberal Democrat Spring Conference

In his speech, Vince Cable said that the Liberal Democrats are the party of fiscal responsibility and fairer taxes.

The full text of the speech is below:

I have a very simple message.

We, the Liberal Democrats, were right about the financial crisis.

We warned of the dangers and we led the debate when the crisis came.

And now we have a clear vision for the future of the British economy.

The Queen is said to have asked why no one warned about the crisis in the banking system. Actually, we did.

Ten years ago a group of us, Lib Dem activists, fought the demutualisation of building societies: a consequence of Conservative legislation which led to the disasters of Northern Rock, Bradford and Bingley and HBOS.

We told Gordon Brown to curb the excess profits of banks which were dependent on a taxpayer guarantee.

We warned him for years that he was in denial about the build up of household debt and the bubble in property prices. He took no notice; nor did the Conservatives.

But we were right.

And when financial disaster struck we insisted that there must be no nationalisation of losses and privatisation of profit: a point belatedly grasped by the government and even more belatedly, and reluctantly, by George Osborne and the Tories.

The government’s economic record speaks for itself: remember the phrases ‘no more boom and bust’, ‘prudence’, ‘Golden Rules’ – all abandoned.

And standing amid the wreckage of the economy Gordon Brown sounds more and more like Mr Ashley Cole saying – give me another chance.

What the public wants to know is who can guide the country out of the present morass: the broken, discredited, banking system; the deepest and longest post war recession, whose effects are far from over; and levels of government borrowing which are not sustainable.

We can.

We have deep, long term problems: an overdependence on banking; an obsession with property over productive investment; a yearning for high, Scandinavian levels, of public spending financed by low US levels of tax; and a financial aristocracy which regards tax paying as something for little people not themselves.

Let me make no bones about it – the challenges are enormous.

I start with the banks since they have been at the root of our recent problems.

Not all bankers were greedy or stupid, but plenty were and they have caused immense economic damage.

The damage continues because the banks have swung from the reckless over-lending which fuelled the boom to conservative under-lending deepening the slump.

Thousands of sound and solvent small and medium sized companies are being slowly throttled because they can’t get credit or it costs too much.

Banks do have a funding problem: all the more reason not to squander what they have on bonuses.

Banks, bailed out by us – the taxpayer – are also building up their balance sheets in readiness for an early re-privatisation instead of supporting British business.

RBS has fallen short of its legally binding lending target to British business.  Lloyd’s won’t even tell us.  That’s simply arrogant.

 I challenge them to give us the figures and Alistair Darling to force them to if they refuse.  Many thousands of British jobs depend on it. 

The need for radical reform doesn’t end there. Banks with global ambitions that are guaranteed by the British taxpayer cannot be allowed to run excessive risks again.

The Governor of the Bank of England has to be supported in his constant warning that banks that are too big to fail are simply too big. They have to be broken up, to increase competition and protect the taxpayer.

The banking collapse and recession have dug a deep hole in the government’s finances.

The next government will have to deal every single day with the consequences. The growing worry about sovereign debt means that there is no hiding place. Nor should there be.

It grates to have the economy held to ransom by currency speculators and the clowns in the rating agencies who missed the Icelandic crash and so badly misjudged the safety of banks. But any Government, of any hue, will have to depend on the markets to finance its deficit.

We must and will be fiscally responsible. 

Unlike the Tories and their cronies who want to create a financial panic and run on sterling to frighten people into voting for them on May 6th.  Playing fast and loose with the financial stability of this country for political gain – destabilising the markets – is dangerous, irresponsible and wrong. 

It is also irresponsible to engage in a phoney war over cuts weeks before an election that will affect the lives of millions of people.

The Government is trying to present itself as the party of spending and public investment but growing numbers of government scientists, FE college and university staff are currently being sacked.

The Tories were trying to project their economic team as ‘Slasher’ Osborne and the Hard Men - until David Cameron executed a giant slalom down the Swiss ski slopes and announced that cuts are off the agenda this year. For now.

Or at least that’s what I think they said.   I’d love to attempt a critique of the Tories budget plans but I have no idea what they are. I think the present line on the budget is: trust us and we’ll tell you after the election. Well I’m sorry but that simply isn’t good enough.

We have to be frank with people about the difficulties ahead.

Spending cuts must not be forced through too soon, making the recession worse. That is not just my view - Sir Alan Budd, the Conservatives’ designated head of fiscal policy thinks the same.

The timing and speed of cuts must reflect the state of the economy, not political dogma. But cuts there will be. We have spelled out some of them.

Serious public sector pay restraint for the next two years: no one with a pay rise over £8 a week and no bonuses at all.

Ending government contributions to the Child Trust Fund and cutting tax credits for high earners.

Axing unaffordable defence contracts such as Eurofighter, and the Trident replacement.   And others, subject to a rapid defence review.

Scaling back programs like HomeBuy, cutting back RDAs. Taking out tiers of burdensome regulation of local authorities, and scrapping undemocratic regional government.

Slashing a bloated central bureaucracy - kicking the consulting habit - and ending illiberal and costly government data bases: like ID cards and Contact Point. And we continue to look across all government departments for further savings. There can be no ring fencing if we are serious about getting the public finances back on track.

And there will be a levy on the profits of banks.

So far we have identified over £15bn per year of savings, most of which are to reduce the structural deficit and which we will be setting out in full at the time of our manifesto.  

But again, we need to do more.

A Liberal Democrat Government would conduct an urgent public spending review. Not Tory butchering behind closed doors.  

We will identify priorities and then debate them publicly.

It’s right and fair that the people who are going to be affected by these changes get to have their say.  That’s Democratic.  That’s open. That’s Liberal.  

Cynics say to me: how can you possibly talk about making economies when the voters want to be promised lots of freebies? 

But it is a massive mistake to underestimate the British people.

They don’t want to be insulted and patronised by politicians they don’t trust telling them that two plus two equals five, because five is a bigger number than four. Or that all of our problems will be solved by painless ‘cutting waste’.

Our programme is different not just because it is more transparent but because it offers two things our rivals can’t: hope and fairness.

The hope derives from a commitment to invest part of the savings more productively in sustainable forms of growth which creates jobs.

Without growth there is no new money to pay down government debt. But it must be sensible growth which doesn’t depend on consumer spending sprees, destroying the environment or the roller coaster of financial gambling.

We want a Green New Deal. Investing in jobs by improving our homes and building more social housing. And we will set up an infrastructure bank to invest in big projects like railways and renewable energy.

And fairness is crucial.

The public will accept austerity for a time if the burdens are fairly shared.

They will not accept it from a government that imposes hardship on the majority while rewarding rich cronies, grovelling to tax exiles and non-doms and ignoring the widening inequalities in income and wealth. 

So we will change our unfair tax system. 

3.6 million people who earn less than £10,000 will no longer pay any income tax at all.

Pensioners will be £100 better off and the average person’s income tax bill cut by £700.

We will pay for the tax cut by blocking tax loopholes that favour the wealthy and taxing their wealth in their mansions worth over £2 million: in other words the people who profited from the boom.

People are desperate to see the back of this Labour government. But they don’t want the same old Tories. And make no mistake they are exactly the same.

There is an alternative.

In just over 50 days there will be a general election.

We know that people want to vote for a party that will radically change our economy, for the better in a financially responsible way.

Our job is to show them we are that party. 

Our job is to make sure that on May 6th they vote Liberal Democrat.

I know we can.  With Nick’s leadership, with your help and work – and your passion and your belief – we will.

Liberal Democrats call for fair start for children

The proposals include:

• An extra £2.5bn investment in schools to reduce class sizes, improve discipline and provide more one-to-one tuition to help struggling pupils, paid as a pupil premium to schools for each of the poorest 1m children they teach
  
• The scrapping of tuition fees for first undergraduate degrees, whether studied full or part-time, over six years

Commenting, Liberal Democrat Shadow Children, Schools and Families Secretary, David Laws said:

“It is a disgrace that where children are born and how much their parents earn can still dictate how well they do at school.

“Schools should be a level playing field, opening up opportunities and making sure that all children have a fair chance to achieve their potential.

“Our plans to invest an extra £2.5bn in schools will enable headteachers to cut class sizes and provide children who are struggling with the support they need.  We will set schools free from constant Government interference so they can focus on getting the best from all children.

“I am proud that the Liberal Democrats have made such a clear and bold commitment to give every child a fair start in life.”

Liberal Democrats call for end to child detention

Commenting, Liberal Democrat Shadow Home Secretary, Chris Huhne said:

“It is a moral stain on this country’s proud reputation in accepting refugees that we are routinely locking up children for months at a time even though they have committed no crime.

“Locking children up in this way can do them serious physical and psychological harm. This is the behaviour of the Victorian workhouses, not 21st century Britain.

“The Government must find its long lost moral compass and put an end to child detention immediately.”

Danny Alexander gives speech to Spring Conference

The full text of the speech is below:
 
Conference – I have been working on this manifesto for nearly a year now. Since then, my wife has become pregnant with our second child.
 
I wouldn’t draw this comparison with her, but I can tell you that working on a manifesto has some similarities: my hopes, my ambitions for how things will change once it comes out. The sleepless nights.
 
But with the due date for our baby at the end of May, I hope to get the manifesto out before then!
 
This election is a huge opportunity for the Liberal Democrats.

Your hard work, your dedication to our Party and your ceaseless activity to get the Lib Dem word out, means we are poised to make gains across the land. I hope our hard work on the manifesto will help you to close the deal.

Two ideas will dominate this election campaign: change and fairness. Only one party is arguing at this election for both fairness and change: the Liberal Democrats.

Change: because business as usual is not the answer to the economic, political, and environmental crises that we face.
 
Fairness: because too many people in our society are still held back because of the circumstances of their birth, their sex or their parent’s bank balance.
 
The dreadful crises we have faced give us the chance to reshape our country.
 
We believe that change must be built around that one simple, powerful, and very British value: fairness.
 
Unlike Gordon Brown – and despite my red hair – I am not known for my bad language. But fairness is not the only ‘F word’ I am going to use today.

It sometimes helps to be able to sum up the other parties in a single word, so let me do it for you.

What is the “F” word for Labour: I say it is F for failed.
 
And what is the “F” word for the Conservatives: I say it is F for fake.

Failed ……. Fake ……. Nothing could contrast more with what we want for the future

The core of the Liberal Democrat manifesto will be short, direct and to the point.

We have stripped away everything that is not essential because the country cannot afford it.

And we have set out in detail – more directly than any other party – how we will tackle the crisis in our nation’s finances.

We won’t make a single promise to the British people without saying exactly how we will pay for it.

We have taken some difficult decisions. I know it is not easy to put on hold some long-standing party commitments that we won’t be able to deliver in the next Parliament.

But it is the right thing to do – because we will not make promises we can’t keep.

But what we can promise is four big steps to a fairer Britain.

Only four.

But four big changes – more significant than anything Labour or the Tories will offer - to reshape the country we live in.

Fair taxes.
 
A new, fair start for all children at school.
 
A rebalanced, green economy.
 
And clean, open politics.

These four pledges are the main subjects of our debates this weekend so let me say something about each.

Fair taxes first. Thanks to Labour and the Tories, the poorest people lose more of their income in tax than the richest. That’s not fairness.

A banker pays only a fifth of his capital gains in tax, while the person who cleans his office gives a third of their meagre wage to the taxman. That’s not fairness.

Our plan is simple: we will make the first £10,000 you earn tax free.

I believe this is the single most radical, distinctive, and fair policy on offer from any party at this election.

That will put £700 into the pockets of almost every working person. £1400 for the average family with two earners.
 
Real money back in the pockets of people who are struggling to make ends meet.

Over 3 million more of the lowest paid people will pay no income tax at all. That’s fairness.

Every week in the Highlands, I meet families who are facing real financial difficulties. Income falling, bills to pay, children to feed and clothe.

They see all the money going to the banks, hear all the talk of cuts, and ask ‘who is standing up for me?’

The answer is the Liberal Democrats.

We’ll pay for it by closing loopholes exploited by the wealthy.

Yes, Lord Ashcroft, that does mean you as well. It’s time to stop thinking you can pass laws, buy seats, but not pay our taxes.

I’m not saying that Lord Ashcroft uses his money to buy influence – but he has had Christmas Number 1 in Belize for the last 15 years in a row.

We will tax capital gains the same as income. End higher rate relief on pension contributions. A new mansion tax paid on the value of homes over £2 million, and fair taxes on polluting air travel.

It is only the Liberal Democrats who are brave enough to tell some of the wealthiest people in the land that – at a time when millions of families are struggling to get by - they will have to pay more.

The first £10,000 you earn, tax free. That’s fairness.

Second, a fair chance for all children.

Under Labour and the Tories in the UK, a child’s chances in life are more closely linked to their parent’s income than anywhere else in Europe. That’s not fairness.

Our plan will give every child the individual attention they need to reach their full potential.

We will cut class sizes to help every child do better.

We are the only party that will spend more on schools - targeted at the children who need the most help.

Head-teachers will be freed to spend that money on what they think will make the most difference. Whether it is smaller classes, more one-to-one tuition, or after school classes.

Even in the depths of the recession, we will find new money for education – by scaling back tax credits to better off families – because it is so important to the future of our country.

Third, a new, rebalanced economy.

Labour and the Tories have been so in thrall to the City, they ignored the rest of the economy and caused the longest recession on record. That’s not fairness.

The Liberal Democrats, with Vince Cable as chancellor, will break up the banks so that they can never again wreck the economy. And until the break up is complete, our new banking levy is the only credible proposal in British politics to make them pay for the guarantee we give them.

We will build a balanced, sustainable economy – growth that lasts. In our first year in government, we will invest to create new jobs and boost the recovery.

And crucially, that investment will be green.

Labour and Conservatives ignored the environment and pushed nuclear energy, dirty coal, airport expansion. That’s not fairness for future generations.

By investing in new, low carbon industries we can keep people in work while we protect our planet too.

And, of course, we will repair the nation’s finances. This year, government is spending £178 billion more than it raises in tax. Even when the recovery gets fully underway, that gap is predicted to be £78 billion.

If we don’t close that gap over the next few years, our economy will be ruined. We will set out – in detail – our plans to guarantee that won’t happen.

Our measures include: the banking levy, scrapping the child trust fund, no like-for-like replacement of Trident, capping public sector pay rises, scrapping ID cards and biometric passports.

I could go on – but I am sure Vince has much more to say on this later.

But I will add that it says something when the Financial Times thinks you’re the most credible party on reducing the deficit.

The Liberal Democrats have the best plan for fixing the economy. We are the best guarantee this country has of future financial stability.

Fourth, clean and decent politics.

Under Labour and the Tories, the broken political system has given government’s total power with a small minority of votes. That’s not fairness.

They have conspired to create a corrupt system of expenses, and then allow those who break the rules to hang on in office. That’s not fairness.

They have hovered up power from communities and councils to the centre. That’s not fairness.

Our plan will put power back where it belongs: with the people.
 
A fair voting system to end safe seats and ensure representative government;
 
Giving people the power to sack their MPs if they break the rules;
 
Power taken from Westminster and given to communities;
 
An end to big money in politics. 

Reforming politics is essential to make the country fairer.

On top of these steps, our manifesto will also set out how a Liberal Democrat government will:

Protect the NHS frontline, using the health savings we find to safeguard services.
Immediately restore the link between pensions and earnings, so pensioners don’t fall further behind when growth returns.
Use the amount of money we would save by scrapping ID cards to put 3000 more police on the beat.
Cut desk jobs at the MOD so we can pay our brave service men and women a decent living wage.
 
Conference, I have known Nick Clegg for 15 years and have worked with him closely since he became our leader – as his chief of staff and on this manifesto.

I can tell you that of the three party leaders, he is the best qualified of them all to be Prime Minister. He is plain-speaking, tells it as he sees it, and most importantly his politics is motivated by his deeply held belief that this country needs to be fairer. His leadership is what our country needs.

He has been clear from the start that these difficult times mean we must be clear about our priorities:

Fair taxes.
 
A fair start for all children.
 
A rebalanced, green economy.
 
And clean, open politics.
 
I want to be clear about one thing: those four steps are a unified package. They must be implemented together if we are to get the fairness we want in Britain. All for one, and one for all.

The more Liberal Democrat votes, the more Liberal Democrat MPs, the more power we will have to deliver our package for a fairer Britain.

The next election isn't between Brown and Cameron, much though they would both like to pretend that it is.
 
It's between the old way of doing politics and the real change represented by Nick Clegg and the Liberal Democrats.

I know we are ready to lead this country. In fact, I believe we are the only party with a clear plan that can lead the country out of the mess we are in.
 
If you want change, vote for the only Party that will bring about change. Change that works for you – vote for the Liberal Democrats.
 

Vince Cable speech to Liberal Democrat Spring Conference

In his speech, Vince Cable will say that the Liberal Democrats are the party of fiscal responsibility and fairer taxes.
 
Extracts from the speech are below:
 
I have a very simple message.
We, the Liberal Democrats, were right about the financial crisis.
We warned of the dangers and we led the debate when the crisis came.
And now we have a clear vision for the future of the British economy.
 
What the public wants to know is who can guide the country out of the present morass: the broken, discredited, banking system; the deepest and longest post war recession, whose effects are far from over; and levels of government borrowing which are not sustainable. We can.
 
The banking collapse and recession have dug a deep hole in the Government’s finances. The next government will have to deal every single day with the consequences. The growing worry about sovereign debt means that there is no hiding place. Nor should there be. It grates to have the economy held to ransom by currency speculators and the clowns in the rating agencies who missed the Icelandic crash and so badly misjudged the safety of banks. But any Government, of any hue, will have to depend on the markets to finance its deficit.
 
We must and will be fiscally responsible. 
 
Unlike the Tories and their cronies who want to create a financial panic and run on sterling to frighten people into voting for them on May 6th.  Playing fast and loose with the financial stability of this country for political gain – destabilising the markets – is dangerous, irresponsible and wrong. 
 
Fairness is crucial.
The public will accept austerity for a time if the burdens are fairly shared. They will not accept it from a Government that imposes hardship on the majority while rewarding rich cronies, grovelling to tax exiles and non-doms and ignoring the widening inequalities in income and wealth.  So we will change our unfair tax system. 
 
3.6 million people who earn less than £10,000 will no longer pay any income tax at all. Pensioners will be £100 better off and the average person’s income tax bill cut by £700. We will pay for the tax cut by blocking tax loopholes that favour the wealthy and taxing their wealth in their mansions worth over £2 million: in other words the people who profited from the boom on our Fantasy Island will pay their fair share.
 
People are desperate to see the back of this Labour government. But they don’t want the same old Tories.
 
There is an alternative.
 
In just over 50 days there will be a general election. We know that people want to vote for a party that will radically change our economy in a financially responsible way. And that will change our society and our politics for the better.  Our job is to show them we are that party.  Our job is to make sure that on May 6th they vote Liberal Democrat. I know we can.  With your help and work – and your passion and belief – we will.
 

This will be the biggest fight of our political lives says Clegg

Extracts from the speech are below:
 
This election is still wide open.
The people out there still haven’t made up their minds.
All bets are off.
 
This Government knows it’s come to the end of the road.
The Tories know people have started to see through them.
And voters know the Liberal Democrats offer something different.
They’ve seen us calling it right, taking a stand, putting principles back into politics…
And they believe us when we say:
Don’t waste this election.
Even if you feel hopeless after everything the other parties have put you through.
Don’t give up on change.
And don’t accept anything less than change that works for you.
 
But don’t think it’s going to be easy.
It’s going to be tough.
Tougher than anything we’ve ever done, because the closer we get the harder our opponents will fight to keep us down.
 
They’ll get nasty; they’ll get personal…
But when it’s really tough, thank your lucky stars you’re not a Labour activist… Desperately trying to keep a brave face on even though defeat is just round the corner.
 
Thank your lucky stars you’re not a Tory activist…
Certain for so long that victory would fall into your lap, only to discover now that the country’s not convinced.
 
But on Monday morning I want you to get out there and go for broke in what will be the biggest fight of our political lives.

Longest serving Tory in Europe joins the Liberal Democrats

Edward McMillan-Scott, the Conservative’s most senior MEP, has joined the Liberal Democrats.

The former leader of the Conservative MEPs who stood against Tory-backed Michal Kaminski has announced his defection to the Liberal Democrats at the Party’s Spring Conference in Birmingham.

Edward McMillan-Scott, the Vice-President of the European Parliament with responsibility for human rights and democracy, was welcomed to the Liberal Democrats by Leader Nick Clegg.

Edward McMillan-Scott, MEP for Yorkshire and North Lincolnshire said: “I have been around the higher circles of the Conservative Party for long enough to fear that on Europe Cameron says one thing in opposition and will do another in Government.

“I have long fought against totalitarianism and the extremism and religious persecution it brings. It was wrong of Cameron to associate with MEPs who have extremist pasts in his new European alliance.

“My reasons for joining the Liberal Democrats are that in Nick Clegg they have a leader whom I like, admire and respect. They are internationalists, not nationalists. They are committed to politics based the values of fairness and change.

“From being a liberal Conservative I become a conservative Liberal. Most of my family are liberals: I am pleased to join the Liberal family.”
 
Liberal Democrat Leader Nick Clegg said:

“I am delighted to welcome Edward McMillan-Scott to the Liberal Democrats.
 
“For many years he has fought for human rights and democracy world wide and he is rightly a respected politician across Europe.
 
“As someone of principle he has refused to cosy up to right wing extremists, despite pressure from the Tory machine.
 
“This flies in the face of David Cameron’s claims of change. It shows that people of principle, who believe in fairness and want real change for Britain are at home in the Liberal Democrats.”

Liberal Democrats reveal election slogan

The slogan is being used at the party’s Spring Conference in Birmingham this weekend.

Commenting, Nick Clegg’s Chief of Staff, Danny Alexander said:

“This election will be about fairness and change and the Liberal Democrats are the only party that will deliver both.
 
“The Labour Party has let people down, they failed to make Britain fair, failed on the economy, failed to protect our environment and they failed to clean up politics.

 
“Everybody knows that the Conservatives will only make things better for those at the top.
 
“The Liberal Democrats are different because we are the only party that will deliver a fairer Britain and bring change that works for you.”

LD2010 Issue Four: Spring Conference comes to Birmingham

Spring Conference 2010: Birmingham

For the first time, Birmingham will be playing host to the Liberal Democrats' spring conference. Whether you are attending or not, we want you to be able to be part of it. All the latest speeches and motions, videos and photos will be available online. Read more >

On Saturday Nick will be holding an online Q & A for all those not attending conference.
Find out more >

Nick Clegg calls for a rebalance of British foreign policy

“The real truth is that the future of British foreign policy is as much in the balance as the future of our economy, or the future of our political system,” said Nick in a speech to Chatham House on Wednesday.
Read more >

Lynne Featherstone launches policy for young people

This week Lynne launched the party's ‘Free to be Young’ policy paper outlining Liberal Democrat commitments to youth in Britain. The paper will be discussed this Saturday in Birmingham.
Read more >

Liberal Democrats celebrate International Women's Day

Monday saw the launch of the Campaign for Body Confidence to coincide with International Women’s Day. Women across the party pledged their support and commitment to equality.
Read more >



Graphics competition: ACT Creative 

A couple of weeks ago we launched a competition for creative people everywhere to design and submit a poster based on the theme of ‘Fairness.’

There is still time from you to submit your entries via our social network ACT.

The best entries will be put to a vote by ACT users and the winner will support our online election campaign messages.

We need a public inquiry into new nuclear says Hughes

Commenting, Simon Hughes said:

“It would be completely unacceptable for the Government to rush through new nuclear in its last days in office without a public inquiry.
 
“New reactors still haven’t been approved and no-one knows how we’re going to deal with the deadly waste.
 
“Ed Miliband has made himself judge and jury having already expressed a clear view on new nuclear.
 
“The Liberal Democrats are strongly opposed to a new generation of nuclear power. We must have an immediate full and transparent public inquiry before any decision is made.”

Social care commitment needed from Labour and Tories says Lamb

Commenting following today’s cross party Age UK, at which the health spokespeople of the three main parties met to discuss the reform of social care, Norman Lamb said:
 
“It’s clear from today’s social care summit that voters want politicians to come together and solve one of the biggest social challenges facing our country.
 
“We need long-term solutions to this problem so that older people are treated with the respect they deserve. We cannot continue with the current system where people have to sell their homes to pay for care and the quality of care on offer is not up to scratch.
 
“There was broad agreement that solving the crisis in social care is going to require a partnership between the state and individuals and if the other parties are willing then there is no reason why the current differences in opinion should be insurmountable.
 
“Liberal Democrats want to put an end to the political bickering. We are willing to work with the other parties to solve this problem once and for all. There should be no preconditions and we are open to all ideas that seek a solution that will be fair, affordable and sustainable.
 
“Rather than shouting at each other let’s have a commitment from all three parties to start finding a solution now.”