Friday, 19 December 2008

Unpopular govenment and working with the Tories??

. Couple of news items from Politics Home here. First-up we have Vince Cable on the state of political play come the New Year...

Mr Cable said that he thought rising unemployment levels in the new year would make the government “deeply, deeply, unpopular"

“The problem at the moment is that there is a major crisis people are baffled, confused and frightened and they turn to the people they know,” he said.

He added: “When the pain is felt in the new year I think the government will be deeply, deeply unpopular.

Mr Cable also said that despite some international criticism of the government’s fiscal stimulus package, there was an international consensus that fiscal policy had to be “part of the mix”.

The reason why almost every serious policy maker, every single western government including the Germans is embracing a fiscal stimulus is because they know it has to be part of the mix,” he said.

Second, we have a rather presumptuous Ed Vaizey;

Mr Vaizey said that in the event of a hung parliament he would be “amazed” if the Liberal Democrats did not co-operate with a minority Conservative government.

“We are going to win the next election outright but should it turn into a hung parliament I would expect us to work with the Lib Dems.

“I would be amazed if they prop up Labour,” he said.

However he said this was unlikely to be a formal coalition, but he believed the Liberal Democrats would “be sensible and support a minority Conservative government”.

He also rejected suggestions that his party were not acting to tackle the recession, saying Conservative policy would be “far more effective”.

The 2.5% cut in VAT had “no impact on retail,” he said…

He added: “Labour could come up with a VAT cut that is going to cost business”.

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