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Lib Dem Vince Cable warning over spending cuts Lib Dem Vince Cable warning over spending cuts
(about 2 hours later)
Serious damage will be done to industry if only certain government departments are subject to spending cuts, Business Secretary Vince Cable has warned.Serious damage will be done to industry if only certain government departments are subject to spending cuts, Business Secretary Vince Cable has warned.
In a Guardian interview at the Lib Dem spring conference, Mr Cable repeated his calls for more infrastructure spending to foster economic growth. In href="http://www.guardian.co.uk/politics/2013/mar/08/cable-coalition-cuts-division" title="Guardian" >a Guardian interview at the Lib Dem spring conference, he questioned whether departments such as health and development should be protected.
Mr Cable repeated his calls for more capital spending and called for pensioners' benefits to be taxed.
Such an approach has already been rejected by the prime minister.Such an approach has already been rejected by the prime minister.
Mr Cable's warning is seen as fresh evidence of tensions within the coalition over economic strategy. Cabinet ministers are involved in tense discussions behind the scenes with the chancellor about future spending plans, ahead of the Budget in a few weeks and a spending review in the summer.
Intense disagreements The business secretary questioned whether some departments should be protected from spending cuts, saying that in his department they had reached the point where further savings would do enormous damage to science and universities.
Cabinet ministers are involved in tense discussions behind the scenes with the chancellor about future spending plans.
Mr Cable has suggested that the political disagreements are so intense that the spending review due this summer might have to be delayed.
He also questioned whether some departments should be protected from spending cuts, saying that in his business department they had reached the point where further savings would do enormous damage to science and universities.
In an interview with the Guardian, the business secretary laid out the Liberal Democrats' priorities.
He said he was disturbed that 85% of future deficit reduction should come from spending cuts and only 15% from tax rises.He said he was disturbed that 85% of future deficit reduction should come from spending cuts and only 15% from tax rises.
Mr Cable called for pensioners' benefits such as the winter fuel allowance, free TV licences and travel passes to be taxed.Mr Cable called for pensioners' benefits such as the winter fuel allowance, free TV licences and travel passes to be taxed.
He repeated his call for more capital spending and said crucial sectors of the economy such as construction needed support.He repeated his call for more capital spending and said crucial sectors of the economy such as construction needed support.
"We have done very brave things in the first spending round, but we have now got to the point where further significant cuts will do enormous damage to the things that really do matter like science, skills, innovation and universities," he said."We have done very brave things in the first spending round, but we have now got to the point where further significant cuts will do enormous damage to the things that really do matter like science, skills, innovation and universities," he said.
Question and answerQuestion and answer
Lib Dem president Tim Farron will formally open the Brighton conference on Saturday morning before a speech by former party leader Lord Ashdown.Lib Dem president Tim Farron will formally open the Brighton conference on Saturday morning before a speech by former party leader Lord Ashdown.
Current leader Nick Clegg will do a question-and-answer session with activists.Current leader Nick Clegg will do a question-and-answer session with activists.
On Friday, Mr Clegg said the Lib Dems had "let people down" by not dealing with claims made against the party's ex-chief executive Lord Rennard.On Friday, Mr Clegg said the Lib Dems had "let people down" by not dealing with claims made against the party's ex-chief executive Lord Rennard.
He told delegates that allegations of inappropriate behaviour towards women would be "investigated thoroughly and independently".He told delegates that allegations of inappropriate behaviour towards women would be "investigated thoroughly and independently".
Lord Rennard has denied the claims.Lord Rennard has denied the claims.
Mr Clegg said women who made complaints had not been properly dealt with in the past and it was up to the party to make sure support structures were in place.Mr Clegg said women who made complaints had not been properly dealt with in the past and it was up to the party to make sure support structures were in place.
The spring conference comes at a turbulent time for the Lib Dems.The spring conference comes at a turbulent time for the Lib Dems.
Mr Farron earlier said the party was in a "critical state" and its survival was not guaranteed.Mr Farron earlier said the party was in a "critical state" and its survival was not guaranteed.
Meanwhile, former Lib Dem cabinet minister Chris Huhne and his ex-wife Vicky Pryce will be sentenced on Monday for perverting the course of justice.Meanwhile, former Lib Dem cabinet minister Chris Huhne and his ex-wife Vicky Pryce will be sentenced on Monday for perverting the course of justice.
Senior figures in the party are facing questions about when they knew of allegations that Pryce had taken speeding points on her husband's behalf.Senior figures in the party are facing questions about when they knew of allegations that Pryce had taken speeding points on her husband's behalf.