Vince Cable emerged victorious yesterday after the Lib Dems put greater emphasis on tax rises than they had previously, in their plan to reduce the UK’s annual deficit.
The party announced that in 2015-16 and 2017-18 the proportion of cuts to tax rises will be split 60/40. This is what Cable has long called for, while Alexander wanted 80-20, as implemented by the coalition.
Alexander, who replaced Cable as his party’s economic spokesman for the election, claimed that the plan “broadly maintains the balance of tax and spend across the entire fiscal consolidation”. A source close to Alexander said that the ratio since 2010 will be 80-20.
A source close to Cable, when asked if he had won the policy battle replied “I think he certainly has”. Another well placed source said: “it’s certainly not the language Danny would have wanted.”