Speaking at the LibDems spring conference in Birmingham this weekend, LibDem Shadow Chancellor Vince Cable (pictured) warned the Conservative Party against cutting back too quickly.
He said: “We have to be frank with people about the difficulties ahead. There will be spending cuts but they must not be forced through too soon, making the recession worse.
“That is not just my view – Sir Alan Budd, the Conservatives’ designated head of fiscal policy thinks the same. The timing and speed of cuts must reflect the state of the economy, not political dogma. But cuts there will be. We have spelled out some of them.”
In his conference speech, LibDem leader Nick Clegg told delegates that Labour was in “denial” about the need for cuts. “This week Alistair Darling and Gordon Brown confirmed the pre election budget won’t include any more details on how to bring the deficit under control. No courage. No honesty. Just a miserable attempt to save their own skins,” he said.
Clegg said his party would scrap higher-rate pension tax relief and Government contributions into child trust funds whilst equalising capital gains tax with income tax should they gain power.
He reiterated plans for a “mansion tax” on properties over £2m along with a crackdown on tax avoidance and an increase in aviation taxes.
Clegg called for the banks to be broken up with a clear split between utility banks and riskier investment banks “so banks never again take insane risks which jeopardize your everyday savings”.