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Lib Dems set to appoint Danny Alexander chief economics spokesman Lib Dems set to appoint Danny Alexander chief economics spokesman
(35 minutes later)
Danny Alexander, the Treasury chief secretary, is to be appointed the Liberal Democrats’ chief economics spokesman in the general election rather than the business secretary, Vince Cable, according to Liberal Democrat sources. Danny Alexander, the Treasury chief secretary, is to be appointed the Liberal Democrats’ chief economics spokesman in the next UK general election rather than the business secretary, Vince Cable, according to Liberal Democrat sources.
The announcement is due to be included as part of a small Liberal Democrat reshuffle that may see Jo Swinson elevated to the cabinet as Scottish Secretary, replacing Alistair Carmichael, who was a leading figure in the campaign to retain Scotland as part of the UK. The announcement is due to be included as part of a small Liberal Democrat reshuffle that may see Jo Swinson elevated to the cabinet as Scottish secretary, replacing Alistair Carmichael, who was a leading figure in the campaign to retain Scotland as part of the UK.
Nick Clegg is eager to end the embarrassing male dominance in the Liberal Democrat top ranks. Carmichael was only recently transferred from the post of Liberal Democrat chief whip, and is a wily campaigner. Nick Clegg is eager to end the male dominance in the Liberal Democrat top ranks. Carmichael, a wily campaigner, was only recently transferred from the post of Liberal Democrat chief whip.
The appointment of Alexander reflects the high esteem in which he is held by Clegg and the reality that he has been at the heart of Liberal Democrat economic policy-making since the early days of the coalition.The appointment of Alexander reflects the high esteem in which he is held by Clegg and the reality that he has been at the heart of Liberal Democrat economic policy-making since the early days of the coalition.
But Cable, given equal billing alongside Clegg in the 2010 campaign, is better known than Alexander and, according to polls, more trusted on the economy. He is also more popular among party activists at least, according to a poll of 735 party members by the Lib Dem Voice blog.But Cable, given equal billing alongside Clegg in the 2010 campaign, is better known than Alexander and, according to polls, more trusted on the economy. He is also more popular among party activists at least, according to a poll of 735 party members by the Lib Dem Voice blog.
This found that 65% wanted Cable as the party’s chief economics spokesman while 24% wanted Alexander.This found that 65% wanted Cable as the party’s chief economics spokesman while 24% wanted Alexander.
Policy differences between Cable and Alexander are not fundamental but ones of emphasis. For instance, they differ over the wisdom of making a further rise in personal tax allowances the number one priority. Cable also emphasises the benefits of public spending to lift growth.Policy differences between Cable and Alexander are not fundamental but ones of emphasis. For instance, they differ over the wisdom of making a further rise in personal tax allowances the number one priority. Cable also emphasises the benefits of public spending to lift growth.
The news comes as Clegg prepares to set out more details of how he will take anyone earning less than £12,500 out of tax by raising the personal allowance from £10,500, a policy the party set out at its Spring conference and then repeated by the Conservatives at its conference. The news comes as Clegg prepares to set out more details of how he will take anyone earning less than £12,500 out of tax by raising the personal allowance from £10,500, a policy the party set out at its spring conference and then repeated by the Conservatives at its conference last week.
Senior Liberal Democrats were not warned of the Conservative plan to grab the policy as its headline pledge at its conference in Birmingham last week. Since the increase in the personal allowance was not a government announcement, but a proposal for the Tory manifesto, David Cameron felt he had no need to inform Nick Clegg in advance. The Liberal Democrats have accused him of daylight robbery.Senior Liberal Democrats were not warned of the Conservative plan to grab the policy as its headline pledge at its conference in Birmingham last week. Since the increase in the personal allowance was not a government announcement, but a proposal for the Tory manifesto, David Cameron felt he had no need to inform Nick Clegg in advance. The Liberal Democrats have accused him of daylight robbery.
Clegg will set out the stages by which he would raise the personal allowance, including a first stage in the first budget of the next parliament.Clegg will set out the stages by which he would raise the personal allowance, including a first stage in the first budget of the next parliament.
There is a recognition among some thinktanks, including Resolution Foundation and the Liberal Democrat’s leading thinktank Centre Forum, that a further rise in the personal allowance may not be the most efficient way to help the low paid, since nearly 5 million of the lowest paid workers already do not pay tax because they earn less than £10,000. The policy now benefits middle income earners most. There is a recognition among some thinktanks, including Resolution Foundation and the Liberal Democrats’ leading thinktank Centre Forum, that a further rise in the personal allowance may not be the most efficient way to help the low paid, since nearly 5 million of the lowest paid workers already do not pay tax because they earn less than £10,000. The policy now benefits middle income earners most.
Centre Forum has called for reform to national insurance contributions, and the Lib Dem pre-manifesto says it will consider raising the employee national insurance threshold to the income tax threshold once the personal allowance rise to £12,500 is delivered. Centre Forum has called for reform to national insurance contributions, and the Lib Dem pre-manifesto says it will consider raising the employee national insurance threshold to the income tax threshold once the personal allowance increase to £12,500 is delivered.
Cable has noted there is a diminishing return for the low paid in continually raising the personal allowance.Cable has noted there is a diminishing return for the low paid in continually raising the personal allowance.