Vince Cable speech to Liberal Democrat Spring Conference

5.01.00am GMT Sat 13th Mar 2010

In his speech, Vince Cable will say that the Liberal Democrats are the party of fiscal responsibility and fairer taxes.

Extracts from the speech are below:

I have a very simple message.

We, the Liberal Democrats, were right about the financial crisis.

We warned of the dangers and we led the debate when the crisis came.

And now we have a clear vision for the future of the British economy.

What the public wants to know is who can guide the country out of the present morass: the broken, discredited, banking system; the deepest and longest post war recession, whose effects are far from over; and levels of government borrowing which are not sustainable. We can.

The banking collapse and recession have dug a deep hole in the Government’s finances. The next government will have to deal every single day with the consequences. The growing worry about sovereign debt means that there is no hiding place. Nor should there be. It grates to have the economy held to ransom by currency speculators and the clowns in the rating agencies who missed the Icelandic crash and so badly misjudged the safety of banks. But any Government, of any hue, will have to depend on the markets to finance its deficit.

We must and will be fiscally responsible. 

Unlike the Tories and their cronies who want to create a financial panic and run on sterling to frighten people into voting for them on May 6th.  Playing fast and loose with the financial stability of this country for political gain – destabilising the markets – is dangerous, irresponsible and wrong. 

Fairness is crucial.

The public will accept austerity for a time if the burdens are fairly shared. They will not accept it from a Government that imposes hardship on the majority while rewarding rich cronies, grovelling to tax exiles and non-doms and ignoring the widening inequalities in income and wealth.  So we will change our unfair tax system. 

3.6 million people who earn less than £10,000 will no longer pay any income tax at all. Pensioners will be £100 better off and the average person’s income tax bill cut by £700. We will pay for the tax cut by blocking tax loopholes that favour the wealthy and taxing their wealth in their mansions worth over £2 million: in other words the people who profited from the boom on our Fantasy Island will pay their fair share.

People are desperate to see the back of this Labour government. But they don’t want the same old Tories.

There is an alternative.

In just over 50 days there will be a general election. We know that people want to vote for a party that will radically change our economy in a financially responsible way. And that will change our society and our politics for the better.  Our job is to show them we are that party.  Our job is to make sure that on May 6th they vote Liberal Democrat. I know we can.  With your help and work – and your passion and belief – we will.