Vince Cable (pictured) has attacked the Labour leadership candidates for failing to recognise their party’s role in the economic crisis.
Speaking at a fringe event at the Liberal Democrat conference in Liverpool yesterday, Secretary of State for Business Innovation and Skills Vince Cable said Labour “created an artificial bubble which did enormous damage”.
He said: “What really, really alarms me about the Labour party is that even now, with hindsight, they cannot see what was wrong. If you listen to the Milibands and Ed Balls, the problem we got into was entirely a problem of the world economy.
“Until they come to terms with their own history we are not going to progress in terms of this debate.”
He said Labour’s reliance on “windfall income” from the City of London and from housing was an “error”.
He said: “They assumed that the bubble economy that had been created and had generated lots of revenue could last forever. It was a flawed model.
“By the time we got to 2007 and the Northern Rock crisis it was blatantly clear this was a bubble economy which was out of control and they refused to recognise it.”