Nick Clegg refuses to end Tory alliance on economic policy

 
16 September 2013
WEST END FINAL

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Deputy Prime Minister Nick Clegg has seen off a movement from Liberal Democrat activists who challenged the party to end its alliance with the Conservatives on economic policy.

Members voted overwhelmingly to defeat an amendment to a party-backed motion, which would have watered down its commitment to eliminating the state deficit by 2018.

Left-wing members in the party had also called for the Lib Dems to abandon its policy on Bank of England independence but this too was defeated.

The potentially difficult votes for Mr Clegg came after he took the unusual step of addressing the conference on the main stage for a debate on a policy motion.

Urging the party to reject the rebel amendments, Mr Clegg said: "Please be careful for what you wish for.

"If we start messing about with the big goalposts we have stuck in the ground which frame the stability which is required for further economic growth, we will destroy jobs and decrease prosperity."

Earlier, sources close to Business Secretary Vince Cable said he would support the party rebels by not voting for the leadership-backed motion in the main hall at the Lib Dem conference in Glasgow.

Half way through the debate, Mr Cable walked in to take his place among party activists - several rows back from where Mr Clegg was sitting with other Lib Dem Cabinet Ministers. With the cameras watching his every move, he went on to support the motion and vote against the controversial part of the amendment.

Meanwhile, Lib Dem peer Lord Oakeshott was seen applauding speeches in the debate calling for greater investment.

The Lib Dem rebels had been led by Naomi Smith, a member of the left-wing Social Liberal Forum, who accused Mr Clegg of entering in to an "ideological merger" with the Tories on economic policy.

She was cheered as she told members the Lib Dems should not "collude" with Chancellor George Osborne on cuts to public services.

In what could be seen as a direct challenge to Mr Clegg, she said: "We must not vote for an ideological merger with the Conservative Party's economic policies. We make policy and then we, conference, empower our leaders to broker compromises in coalition."

Other members were concerned about the party's economic policy.

Turning to Mr Clegg in the main hall, Paul Holmes, former Lib Dem MP for Chesterfield, said: "Nick, most people know that you and I haven't see eye-to-eye on almost anything really.

"But even I want you to lead us to victory in 2015... but I want you to do with a strong Liberal Democrat manifesto, with Liberal Democrat policies.

"Labour will not write a coalition manifesto, the Conservatives will not write a coalition manifesto - we should not write a coalition manifesto."

And retired economics teacher Jonathan Cole praised Mr Cable for improving Mr Osborne's economic strategy.

"The original Osborne plan A has been a disaster. Fortunately, people like Vince Cable have helped to finesse the original plan A," he said.

Former MP David Howarth, who had represented Cambridge, defended the amendment, telling the hall it was "not a left-wing, Troskyite nonsense". He added: "It is modern, pragmatic and yes, even centrist."

And activist David Grace joked: "This is the first conference he had attended where the leader was making a challenge to the membership."

But party President Tim Farron urged the party to back Mr Clegg and vote for his motion.

He acknowledged that the party had been dramatically affected by their decision to enter into coalition with the Conservatives and support austerity, but that it was right for the country.

"That decision may have have damaged the party, but it saved the country and I am glad that we did it."

Mr Farron said it would be wrong to abandon the economic plan they had agreed to at the "11th hour".

"There is nothing progressive about bottling out of hard decisions to stabilise our finances," he said.

"There are dozens of friends who have paid dearly with their seats for this party's decision ... that does not mean the party did the wrong thing.

"There are millions of people better off because we did the right thing. Economic confidence amongst the confidence is the highest it's been in 16 years. Unemployment is coming down. Lib Dems in government have helped create 1.4 million jobs, economic growth has returned and it is increasing. Only an idiot would be complacent; we are no way near out of the woods, but the alternative is real and unmistakable."

He said: "It's good for Britain and let's be blunt it's good for the Liberal Democrats so long as we don't, at the 11th hour, choose to disown it."

Warning against handing over credit to Mr Osborne, Mr Farron said: "What an irony: just as the economy was growing, just as our 2010 decisions were being vindicated, just as our fortunes were turning, we got the jitters and handed the credit to George Osborne. What an irony if just at the moment that even as Ed Balls isn't sure that he agrees with Ed Balls ... we might agree with Ed Balls."

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