Tag Archives: vince cable

Opinion: Once again, the French show a little bit more imagination…

The reduction in VAT from 17.5% to 15% quickly condemned and rightly so, by Vince Cable, as expensive and ineffective is one of this government’s more costly errors. The one year only cut will cost us the incredible sum of £12.5 billion pounds and has done little to stimulate consumer spending, simply because despite the enormous cost it still seems so meaningless at the till.

Indeed, it may will come with a sting in the tail, as when it comes to an end and VAT goes back to 17.5% it will come with a sharp inflationary jolt which may well trim back some of those ‘green shoots’ that Labour will being telling us about this winter.

The French, as usual, have shown a little bit more imagination.

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Time for a high-pay commission?

Catching up on what happened in British domestic politics while I was sojourning on the continent, I came across Vince Cable’s Guardian article, The rich must be reined in, in which our deputy leader advocated the establishment of a high pay commission ‘to measure the claims of top earners that their rewards are justified and necessary, even if they offend natural justice and our sense of fairness.’

It seems to have evaded the LDV Collective’s radar (tsk, I go away for two weeks, see what happens), so here’s an excerpt:

There is nothing intrinsically offensive to most people about talented inventors, entrepreneurs, performers or sports stars benefiting substantially from unique talents that enrich or protect or entertain the rest of us. Even if Bill Gates didn’t give away a lot of his fortune, most of us wouldn’t quarrel with his being a very rich man.

There are, however, two things that do cause offence: one is reward without merit, or reward for failure; the other is tax-dodging. We have plenty of both. If a £25,000-a-week footballer is lazy or useless, the crowd provides a public exercise in market-testing. Other talents are less public. That is why all high pay should be publicly declared in a way that directors’ pay already is. …

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Ask questions at conference – even if you’re not there!

Party members not going to the Bournemouth conference still have a chance to input to some of the discussions. The conference features three Q&A sessions:

Sunday 20th September (afternoon) – with Rt Hon Nick Clegg MP, the Leader of the Liberal Democrats

Monday 21st September (morning) – Crime Policy: Panel including Chris Huhne MP (Shadow Home Secretary), Jan Berry (Independent Reducing Bureaucracy Advocate), Juliet Lyon (Director, Prison Reform Trust) and Professor Larry Sherman (Wolfson Professor of Criminology, University of Cambridge)

Tuesday 22nd September (afternoon)
– The Economy: Panel including Vince Cable MP (Shadow Chancellor of the Exchequer), Jeremy Purvis MSP …

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CommentIsLinked@LDV: Vince Cable on the surveillance state

Vince Cable’s latest column for the Mail on Sunday is out and this time it’s about civil liberties:

A quarter of a century has passed since 1984, the titular year of George Orwell’s novel which described a world constantly spied upon by an all-powerful dictator, the fearsome Big Brother.

It never happened. Orwell’s nightmarish vision was realised, for a while, in communist Eastern Europe but the Stasi and similar agencies have now gone.

And yet in a quiet, insidious way our own democratic society is producing a surveillance state that Big Brother would have been proud to call his own.

You can read

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CommentIsLinked@LDV: Vince Cable doesn’t know when the economy will recover

Our Vince penned a piece for the Daily Mail yesterday with the  delicious title “The economy is now sitting up and showing signs of recovery

In it, Vince made the startling admission that he is not, in fact, an all-seeing mage with black powers over the future of the economy:

I am often asked to play the part of Nostradamus. Since I had been a reasonably successful prophet of doom, I am now assumed to know when the economy will turn round. I don’t. No one knows.

It does seem likely, however, that a major disaster has been averted. We are no

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Haggis, Neeps and Liberalism #6

It has been a busy time in Scotland over recent weeks and what with Holyrood in recess for a month before Westminster broke up, there have been holidays to work around, babies being born, MPs standing down and candidates being selected all over as well as an away day for all parliamentarians and campaign staff.

Archie Scott was born earlier this week, weighing 8.5lbs to the delight of Kirsten and Tavish, our sincere congratulations to them both.

Alison and Mike Moore also have recently had a baby, Ella Louise. Now, Ella Louise was born prematurely so Mike …

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A tale of two recessions

“It was the best of times, it was the worst of times…”

Dickens may well have been writing about 18th century France, but it’s likely that historians looking back at 2009 would conclude something similar about our current economic predicament.

In the midst of a recession triggered by a financial crisis, the economy at large has been in decline in the UK for five quarters. The knock-on effects of the credit crunch, brought on largely by unsustainable and deregulated banking speculation, have been dire; bail-outs in the billions which, according to Vince Cable’s sage analysis, “privatise profits and nationalise losses“; job …

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Public in dislike of petty partisan politicking shock!

Nick Bye, the third-placed Tory candidate in their Totnes ‘open primary’, writes a cheerily self-deprecating account of his experiences in today’s Times, A popular raspberry against yah-boo politics:

Matthew Parris chaired the big hustings meeting, which I reckoned would be a walkover for me — it was very much my home territory. I’m a mayor and used to traditional, on-the-stump speeches. But this is where the open primary system really worked for Dr Wollaston. She had the good sense to appreciate that party political point-scoring was just not what this audience wanted to hear.

I, however, made the mistake of using one of of my favourite lines of attack. “The biggest myth in British politics is that Liberal Democrats are such nice people” went down a storm in front of the party executive. But in front of a wider audience, it fell as flat as a pancake.

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Scorched on the Rock

Yesterday Northern Rock – taken into public ownership 18 months ago – posted its figures for the first six months of the year. They made for eye-watering reading:

Nationalised bank Northern Rock made a pre-tax loss of £724m for the first six months of the year as its bad debts tripled. The Newcastle-based firm wrote off £602m in bad loans and expects that figure to be similar in the second half of 2009.

The bank revealed that 6.4% of Together mortgages – the 125% loan-to-value product now withdrawn – are more than three months in arrears, up from 2.14% a year

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Banking bonuses to boom again?

Share prices surged today as Barclays and HSBC posted combined profits of £6bn.

The banks’ investment banking arms largely accounted for the growth, which comes less than a year after the banking system was rescued with taxpayers’ money.

From the Guardian:

“Barclays’ chief executive, John Varley, who described the tumultuous events of the last two years as “humbling”, stressed that bonuses would not be paid until the financial year ended and would be subject to tougher new rules. These are being devised by the bank’s senior independent director, Sir Richard Broadbent, who will brief major shareholders later this year.

“Varley said: “We don’t

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CommentIsLinked@LDV… Vince Cable: Banks pay up for their ‘crimes’, so why not rapists?

Over at the Daily Mail, Lib Dem deputy leader Vince Cable argues that Britain’s system of compensation awards is “mad”. Here’s an excerpt:

… The real scandal, however, is the meanness of the criminal injuries and military compensation system. The Armed Forces scheme is now being, belatedly, reviewed. But criminal injury awards seem likely to remain not only pitifully small but severely restricted and tardy. I had to write angry letters to the Government agency dealing with criminal injuries when a constituent – an innocent bystander who had been attacked by gangsters throwing acid in a pub – had been waiting

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Daily View 2×2: 31 July 2009

Welcome to this, the final summer edition of LDV’s Daily View – the feature will return again at the beginning of September, as will the various members of the LDV editorial collective.

2 Big Stories

Treasury select committee slams Government’s “largely cosmetic” banking reform plans

Here’s what the BBC has to say:

The government’s plans for reforming the regulation of banks are “largely cosmetic” and “lack clarity”, MPs in the Treasury Select Committee say.

In its report on the banking crisis, the committee says that responsibility for strategic decisions and action remains “a muddle”. The report also says that the Financial Services Authority (FSA) “failed spectacularly” in supervising banks.

More importantly, here’s what Vince has to say:

This report rightly underlines the need for high quality and transparent regulation if we are to create a stable financial system. We must not create a regulatory system that just deals with the current crisis but one which is fit for all the challenges ahead.

“The cross party report also exposes the sheer folly of George Osborne’s proposal to hand all power back to the Bank of England. While it is true that breaking up the banks will be complex, it is also necessary. A bank which is too big to fail is simply too big.

“The secrecy in which the White Paper was created shows the extent of the deteriorating relations between the Bank of England and the Government and does not bode well for the future.”

Gary MaKinnon loses US extradition court battle

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Daily View 2×2: 29 July 2009

2 Big Stories

Kingman steps down from UKFI

As the Press Association reports:

The company responsible for the taxpayer’s stakes in ailing banks saw a leadership shake-up as chief executive John Kingman announced plans to step down. Mr Kingman, who has led UK Financial Investments (UKFI) since it was formed last November, will step down from the £143,000 post in “due course” for a career in the private sector.

Lib Dem deputy leader Vince Cable is worried by this upheaval at the very top of UKFI:

UKFI is one of Britain’s most powerful bodies and these changes at the top come at a very sensitive time. What is worrying about these changes is that Mr Kingman is leaving at a time when it’s clear the Government hasn’t really got a grip on the banks.

“This is the one person within the Treasury who knew where all the skeletons are buried and what’s going on. His departure at this time will leave a massive hole.”

Meanwhile in other Vince-related, recession-related news, our shadow chancellor has once again called for the big banks to be broken up for posing too great a risk to the taxpayer:

He criticised the combination of ordinary banking, such as business lending and mortgage payments, and so-called casino banking.

“These two things should not co-exist in the same institution,” he said. “It is highly unstable. It means the British taxpayer is underwriting very dangerous high-risk activities, so for that reason alone they should be split up. In addition the European Commission has made the case that there is now far too little competition.”

He said increasingly concentrated ownership did not give the consumer a good deal. “It is dangerous in giving excessive market power and before these banks are returned to private ownership they should be split up,” the Lib Dem MP said. “This may mean reopening, for example, the whole issue of the Lloyds/Royal Bank of Scotland merger and possibly reversing it.”

Lib Dem celebrity news round-up

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Which TV show cheers Nick up? And which public intellectual does Vince most admire?

Ever wondered which TV programme helps our leader to unwind chez Clegg? Well wonder no more, for The Guardian has asked Nick and an eclectic range of others in the public eye:

Nick Clegg, leader of the Liberal Democrats

Jerry Seinfeld. His stories often don’t have a point or a punchline, but they’re effortlessly witty, quirky and original.

I feel compelled to report that Margaret Beckett nominated Last of the Summer Wine. This choice alone should have been sufficient to preclude her from being elected Speaker.

Meanwhile Lib Dem deputy leader Vince Cable answers a range of readers’ questions in the Independent, though …

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Final push for votes in Norwich North

Poor Labour. Not only do they face losing the Norwich North by-election, but their candidate Chris Ostrowski has gone down with suspected swine flu. (Genuine sympathies to him for a speedy recovery).

Today’s Eastern Daily Press assesses the currrent state of play HERE, including this snippet:

Private Lib Dem canvassing suggests that the party is lying second to the Tories, on 24pc. But other party canvassers report that the Greens are performing strongly in traditional Labour areas.

(Actually I’m not sure there’s necessarily a discrepancy between those two reports).

Vince is, as ever, ready with a quote:

We know support is crumbling

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CommentIsLinked@LDV… Vince Cable: Some banks have not acknowledged their near-death experience

Over at The Independent, Lib Dem shadow chancellor Vince Cable’s speech to the London Stock Exchange is excerpted:

I stand here to outline the Liberal Democrat proposals for significant changes to the regulatory structure of the City and its future direction. These proposals build on ideas we set out over a year ago in our New Deal for the City. Some of those ideas – macroprudential regulation of bank capital; linking bonuses to long-term stock performance; reform of rating agencies – have become part of the conventional wisdom and I don’t need to rehearse them.

You can read more excerpts from …

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Vince on reform of banking regulation

Lib Dem shadow chancellor Vince Cable has been delivering a speech on reform of banking regulation to the London Stock Exchange, outlining the ways in which the current regulatory model could be improved. Here’s the skinny:

  • RBS and Lloyds to be broken up before they are returned to private ownership
  • Highly paid bankers to publish details of their remuneration and confirm they are resident and domiciled in the UK
  • The FSA to remain as a unitary regulator
  • A long-term role for state banking, rather than the quick sale of state-owned banks
  • The scrapping of the “woefully misconceived” Asset Protection Scheme

And here’s Vince’s customarily pithy sound-bite:

The Government has yet to grapple with the challenge posed by the Governor of the Bank of England: that if a bank is too big to fail it is too big. One approach is to make it easier for big institutions to fail.

“Some aspects of the financial services industry are simply too big for the British economy to manage safely. The large, failed, British banks are the financial equivalent of Chernobyl. Like the former Soviet Union, the UK became over reliant on dangerous financial reactors.

“Britain has the highest share of banking assets in GDP of any major country, four times as high as the US. To prevent Britain from becoming the next Iceland, radical safety measures, like ones I have set out, are required.

“My approach to the City is not one of hostility, or of obsequiousness. I recognise its importance. But it needs ‘tough love’, not the freedom to run amok.”

But for those who want to read Vince’s words of wisdom in greater detail, excerpts from the speech transcript follow:

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Vince Cable 1, Labour Party attack document 0

Back in 2005 the Labour Party published a document attacking 100 (alleged) spending commitments the Liberal Democrats had made, including one which accurately quoted Vince Cable from his website:

Twickenham has one of the best bee keeping centres in the country. Many local people support it. Benefits from bees’ natural pollination activities are enormous, worth billions of pounds. There is however negligible research into damaging diseases and I have pressed the ministry of agriculture for a bigger research commitment.

Oh, how Labour laughed back then at the absurdity of the idea that money should be spent on hard working bees rather than …

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Opinion: Cameron’s vision for local government is bleak

Last week’s Local Government Association conference was addressed on its final day by three representatives from Westminster who’d made the journey northwards to Harrogate to face the serried ranks of senior local government councillors and officers.

The Lib Dems were represented by Vince Cable MP, given an early morning slot that not everyone got to. He was warmly received by all those who were there, in any case, which may represent that it was just the Lib Dem LGA group present. His speech covered his history as a councillor himself in the early 1970s when local government …

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Daily View 2×2: 9 July 2009

Happy Independence Day, Argentina! And happy birthday to Paul Merton and Tom Hanks.

Two big stories

Murdoch Papers hack phones
The Guardian has the story of Murdoch titles doing dodgy things with mobile phones – and it backfiring on them to the tune of at least £1m. There are clear links to current Conservative communications chief Andy Coulson.

There’s an awful lot of this story on the Guardian’s site – including an interview with hack victim Lib Dem MP Simon Hughes.

I hope this story has legs. This was shoddy journalism that should have serious consequences.

Darling’s banking reforms attacked
The FT looks

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Deputy PMQs: Vince tackles Harriet on bankers’ bonuses

Y’know I’ve expressed my general contempt for the pantomime which passes for Prime Minister’s Questions on many occasions: it’s theatre, mirage, insubstantial: all performance, no content. But we discovered today there’s something worse than the usual rowdy PMQs: when there’s both no performance and no content.

It’s hard to remember that William Hague once had a fearsome Commons reputation for being the best, sparkiest, wittiest debater on the block. Perhaps all those after-dinner speeches have dulled his senses – or perhaps he reckons he’s not paid enough to waste all his best lines on Parliament – but today’s performance against Prime Ministerial stand-in Harriet Harman was lame and dull. To put it in context, he made Harriet look actually quite good. She wasn’t – she was anodyne and frequently out-of-her-depth – but the comparison was to her credit, not his. Still, at least Mr Hague was better than Gordon Brown.

Vince Cable rose, as is traditional, to cheers from all-corners of the house. He started with a dry, slightly obscure, joke in Harriet’s honour – “may I express the hope that when she was briefing the Prime Minister for talks with his friend Signor Berlusconi, she remembered to enclose an Italian translation of her progressive views on gender equality?” – but then stuck to the touchstone issue among the public at the moment: how can government ministers talk of the need for public sector pay restraint when they are signing-off large bonuses for executives in banks currently majority-owned by the public? Harriet made a half-heartedly fierce show of sounding tough while committing the Government to nothing.

In a low-scoring contest, Vince edges it both for injecting (a little) humour into proceedings, and (more importantly) for asking a question that matters to the public, on an issue the government can do something about, and where his own party has something distinctive to say. Mr Hague, take note.

Full Hansard transcript of Vince and Harriet’s exchanges follow:

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Vince: “This is not so much a White Paper as a blank paper”

Here’s the spin bout today’s Government’s Banking Regulation White Paper Labour’s chancellor Alistair Darling was hoping the media would buy, as faithfully recorded by the BBC:

UK banks will face tougher regulation and consumers will get more protection, under reforms to the financial system proposed by the chancellor.

And here’s the spin-free reality from Lib Dem shadow chancellor, Vince Cable:

This is not so much a White Paper as a blank paper. While the Government has sensibly copied certain short term aspects of the Turner review it has failed to take action on the semi-nationalised banks. Mr Darling should have used this opportunity to assert his authority over the banks – instead he is maintaining his passive role in UKFI, which is just not good enough.

“How can the Chancellor keep pretending that the semi-nationalised banks are not a tool of public policy when they benefited from billions of pounds of taxpayers money? Looking ahead to the future is all well and good, but the Government has failed to send a message to the banks that excessive risk taking and bonuses are simply unacceptable.

“There will be champagne corks popping all over the City this afternoon – the Chancellor’s statement proves that it really is business as usual.”

Youo can hear Vince interviewed on this morning’s BBC Radio 4 Today Programme about the issue, below:

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CommentIsLinked@LDV: Vince Cable – We’re the masters of the banking universe

Over at The Times, Lib Dem deputy leader Vince Cable argues that government should stop being so polite and lay down the law: free up lending, regulate risk and don’t sell the taxpayer short. Here’s an excerpt:

There is a battle royal being fought out over the scale and scope of regulation. There is some common ground: mindless, bureaucratic box-ticking has to give way to a form of supervision that identifies systemic risk; there is also agreement around the concept of “macro-prudential” regulation, with the Bank of England in the lead.

There are powerful forces arguing for the return to the status

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Vince Cable’s autobiography – title confirmed?

After the stunning success of his guide to the economic crisis – The Storm has been a top 10 bestseller since its release – Vince Cable’s autobiography is set to be published this autumn. And if you believe the Hickey column in the Express (and who wouldn’t?) the tome now has a title: The Free Radical. Nothing on Amazon yet, but we’ll keep you posted.

By the way, if you haven’t read The Storm yet, it’s available now for just £6.74 with free P&P: click this link, and you’ll even earn the Lib Dems a little commission.

Posted in News | 9 Comments

Daily View 2×2: 1 July 2009

2 Big Stories


British economy in worst state in over half a century

Perhaps it’s the sweltering weather, perhaps recession fatigue has set in, but there is little reaction to yesterday’s startling news that the British economy contracted by 2.4% in the first quarter of 2009 – the worst decline in more than 50 years. It isn’t the main story for even one of the newspapers, though it led all last night’s TV news programmes. Lib Dem deputy leader Vince Cable underscored the seriousness of the data:

The biggest three month fall in GDP in more than half a century is a clear

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Six (count ’em) families now benefitting from Labour’s mortage rescue scheme

There was a fair amount of mockery of the Government a couple of months ago when it was revealed that Labour’s flagship Mortgage Rescue Scheme, launched last autumn, had helped only one family up to the end of April.^

I said then that these things take time, Rome wasn’t built in a day etc. How prophetic, for today we discover that the figure of families helped by the Mortgage Rescue Scheme has rocketed … to six. Or 6 if you prefer. To be fair, that’s a 600% increase. On the debit side, the original intention was to help 6,000 families facing repossession.

Here’s what Our Vince had to say about it:

Helping just six families is absolutely pitiful and doesn’t even begin to address the scale of the problem. Vast reams of red tape stand in the way of families faced with repossession staying in their own homes. There are enormous time lags and the vast majority of people who think they are eligible find that they are not.

“Repossession is a ticking time bomb. Despite the predictions of a modest fall, the numbers of repossessions are likely to soar in the next two years because of rising unemployment. Temporary Government schemes are deferring the problem, not solving it. If interest rates start to rise next year, the problem will become even more severe.”

Vince was today leading a debate in Westminster Hall on this very issue of mortgage arrears and repossessions – you can read the Hansard transcript HERE. Here’s his conslusion:

Repossession is only really a problem because of the underlying lack of available housing, particularly social housing. If social housing was freely available, repossession would not be the tragedy and disaster it currently is. Are the Government, working with the charitable bodies, doing any research at the moment on what happens to people who become repossessed? I do not think that any of us know where those people actually go, although anecdotal evidence suggests that most of them go into the private rented sector, which of course presents problems of its own. Many people go into the private rented sector because they can then get housing benefit, which they found more difficult to get as owner-occupiers, but many of them are still in considerable difficulty.

There is still an issue about how to ensure greater availability of affordable housing in the long term.

Posted in News and Parliament | Also tagged and | 4 Comments

CommentIsLinked@LDV: Vince Cable – Our next test of courage: to cut public sector pensions

Over at the Daily Mail, Lib Dem deputy leader Vince Cable argues that the vast scale of government debt means we must tackle public sector pensions. Here’s an excerpt:

Gordon Brown’s continual squirming and denials can’t conceal the truth: public finances are in a truly terrible mess. People know that nasty spending cuts and tax increases are on the way. They want political leaders to be frank and spell it out. What, when and how?

They will not be convinced by George Osborne’s alternative: to win an Election and then get Ministers round a table behind closed doors to decide what the

Posted in LibLink | 3 Comments

Opinion: Meeting Vince Cable (sort of)

I attended the Guildford Lib Dems Summer Supper last night organised by Sue Doughty the former Guildford MP and PPC and her team. The guest of honour was Vince Cable who has been a frequent visitor to Guildford and supporter of Guildford Lib Dems over the years.

Despite living about 20 miles away, in Sandhurst, I have helped out with canvassing etc. numerous times in Guildford. The incumbent Tory MP only has a majority of a few hundred and it is nice to help out in a constituency where we have a very good chance of taking the seat back …

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Daily View 2×2: 24 June 2009

2 big stories

As any fule kno, the chair of the Iraq enquiry Sir John Chilcot has ruled that as a default all evidence should be given to the enquiry in public. He has also indicated that he will be calling Tony Blair and Gordon Brown to give evidence. From the Guardian:

The move to open up his hearings, which came on the eve of a Commons debate tomorrow on the inquiry, shows that a wholesale change of the terms has been carried out since the inquiry was established by the prime minister last week. The decision to summon Brown and Blair for public hearings was disclosed by Nick Clegg, the Liberal Democrat leader, who met Chilcot today on privy council terms. Chilcott held a separate meeting with David Cameron on the same terms.

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CommentIsLinked@LDV: Vince Cable – Peril of barking bankers tugging at leash

Over at the Daily Mirror, Lib Dem deputy leader Vince Cable writes about the “dangerous mood building up in the City. Bankers are straining at the leash. They sniff a chance to get back to business as usual.” Here’s an excerpt:

Last week the Governor of the Bank of England warned that banks which are “too big to fail” are simply too big. The UK taxpayer cannot stand behind global banks and the casinos, the big investment banks. These make their profits from speculative trades. Casinos are legal but are not banks. They have to be split off. …

Bankers think

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  • David Allen
    Tristan, Thanks for the link, which is interesting. Neidle's "taxes people want to raise" are ideas like wealth tax, which Neidle thinks wouldn't work well....
  • David Allen
    Peter, In the 2025-2026 financial year, the UK government is expected to spend approximately £111.2 billion on central government debt interest. This repres...
  • Peter Martin
    "If we pumped loads of money into schools and hospitals, and insisted on getting all the money by borrowing rather than taxing, the bond markets would righ...
  • Tristan Ward
    @ David Allen "getting taxes out of our wealthy oppressors is just too hard". More importantly (possibly) is that it simply would not raise enough money t...
  • David Allen
    Where Vince goes wrong, in my view, is the next step. If we can't buck the bond markets, then we have a simple choice. Raise taxes, or accept that we "can't a...