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| Lib Dem conference: Clegg denies rift with Cable over economy | Lib Dem conference: Clegg denies rift with Cable over economy |
| (35 minutes later) | |
| Nick Clegg has denied suggestions of a rift between him and his Cabinet colleague Vince Cable about the Lib Dems' future economic policy. | Nick Clegg has denied suggestions of a rift between him and his Cabinet colleague Vince Cable about the Lib Dems' future economic policy. |
| The party is debating a motion at their conference, with some activists calling for the party to differentiate itself more clearly from the Conservatives. | The party is debating a motion at their conference, with some activists calling for the party to differentiate itself more clearly from the Conservatives. |
| The business secretary was expected to miss the debate, seen as a challenge to Mr Clegg, but he is attending. | |
| Sources close to Mr Cable said talk of a row had been "massively overblown". | Sources close to Mr Cable said talk of a row had been "massively overblown". |
| Although it will not be binding on the government, Monday's debate will be a clear indication of what activists are thinking and will help shape the direction of the party's economic policy in the run-up to the next election - scheduled for 2015. | Although it will not be binding on the government, Monday's debate will be a clear indication of what activists are thinking and will help shape the direction of the party's economic policy in the run-up to the next election - scheduled for 2015. |
| 'No complacency' | 'No complacency' |
| Mr Cable has been more cautious about the state of the economy than most other ministers - including his party leader - warning that talk of a lasting recovery was premature and that it risks being derailed by another housing bubble and other factors. | Mr Cable has been more cautious about the state of the economy than most other ministers - including his party leader - warning that talk of a lasting recovery was premature and that it risks being derailed by another housing bubble and other factors. |
| His warnings have led Prime Minister David Cameron to call him a "Jeremiah" while former Lib Dem leader Sir Menzies Campbell has urged Mr Cable to be "less gloomy". | His warnings have led Prime Minister David Cameron to call him a "Jeremiah" while former Lib Dem leader Sir Menzies Campbell has urged Mr Cable to be "less gloomy". |
| It was reported on Sunday that Mr Cable would not vote for the leadership motion on the economy which defends the party's achievements in government, including its deficit reduction strategy, but urges more investment in housing and other areas. | It was reported on Sunday that Mr Cable would not vote for the leadership motion on the economy which defends the party's achievements in government, including its deficit reduction strategy, but urges more investment in housing and other areas. |
| But Mr Cable arrived in the conference hall one hour into the debate and ahead of Mr Clegg's own contribution - although he did not sit alongside his party leader and other ministers. | |
| The BBC understands that Mr Cable - who will give a speech of his own later - will vote for the leadership's position after all. | |
| Speaking to the BBC, Mr Clegg said he agreed there was "no room for complacency" and the government must be "vigilant that we do not preside over another asset bubble". | Speaking to the BBC, Mr Clegg said he agreed there was "no room for complacency" and the government must be "vigilant that we do not preside over another asset bubble". |
| But he said the fact the economy was growing again was due, in part to the fact that the Lib Dem had "held their nerve" in the face of calls to change direction and this was a "feather in their cap". | But he said the fact the economy was growing again was due, in part to the fact that the Lib Dem had "held their nerve" in the face of calls to change direction and this was a "feather in their cap". |
| Mr Clegg said Monday's leadership-backed motion recognised the government's achievements but set out things the Lib Dems would do differently from their Conservative partners - such as allowing councils to borrow against their balance sheets to fund new homes. | Mr Clegg said Monday's leadership-backed motion recognised the government's achievements but set out things the Lib Dems would do differently from their Conservative partners - such as allowing councils to borrow against their balance sheets to fund new homes. |
| 'Doing well' | 'Doing well' |
| Asked about Mr Cable's participation, Mr Clegg said he could not control what his colleagues did. | Asked about Mr Cable's participation, Mr Clegg said he could not control what his colleagues did. |
| "I think this is a slight storm in a tea cup," he told Radio 4's Today. | "I think this is a slight storm in a tea cup," he told Radio 4's Today. |
| "I am the leader of the Liberal Democrats. I do not run a boot camp... he has made it quite clear that, of course, he supports the motion because, not least, he is in effect one of the co-authors of it." | "I am the leader of the Liberal Democrats. I do not run a boot camp... he has made it quite clear that, of course, he supports the motion because, not least, he is in effect one of the co-authors of it." |
| He added: "The key thing is - does the motion strike the right balance between the credibility we have assumed as a party because of they way we have held our nerve over the last three years... but at the same time sets out new ideas on further reforms of banking, further investment in green technologies and further investment in housing." | He added: "The key thing is - does the motion strike the right balance between the credibility we have assumed as a party because of they way we have held our nerve over the last three years... but at the same time sets out new ideas on further reforms of banking, further investment in green technologies and further investment in housing." |
| The Lib Dem leader said it was "wrong" to suggest economic growth was limited to the south of the country and certain sectors since the picture for manufacturing was improving and many export firms in his Sheffield constituency had been doing "exceptionally well". | The Lib Dem leader said it was "wrong" to suggest economic growth was limited to the south of the country and certain sectors since the picture for manufacturing was improving and many export firms in his Sheffield constituency had been doing "exceptionally well". |
| The leadership's position was backed by a succession of ministers and prominent MPs, including party president Tim Farron - who said there was "nothing progressive about bottling out of hard decisions to stabilise our finances". | The leadership's position was backed by a succession of ministers and prominent MPs, including party president Tim Farron - who said there was "nothing progressive about bottling out of hard decisions to stabilise our finances". |
| Watering down the government's economic strategy was "politically unwise" and the party should not "disown" it, he said, urging the Lib Dems to "stick to their guns". | Watering down the government's economic strategy was "politically unwise" and the party should not "disown" it, he said, urging the Lib Dems to "stick to their guns". |
| 'Distinctive' | 'Distinctive' |
| But an amendment put forward by the Social Liberal Forum calls for the party to put forward a "distinctive, independent" economic policy in the run-up to the 2015 election, including changing the remit of the Bank of England to focus on jobs and living standards. | |
| Dr Prateek Buch, one of the amendment's authors, said "coalition compromises" could not be the starting point for the party's 2015 policy and suggested the government's deficit reduction strategy needed to be more flexible. | Dr Prateek Buch, one of the amendment's authors, said "coalition compromises" could not be the starting point for the party's 2015 policy and suggested the government's deficit reduction strategy needed to be more flexible. |
| "The pace of cuts and tax rises need to take account of what is happening in the real economy," he told the BBC News Channel. | "The pace of cuts and tax rises need to take account of what is happening in the real economy," he told the BBC News Channel. |
| Backing the amendment, party member Naomi Smith accused Chancellor George Osborne of inflating the housing market with a "mortgages for votes" scheme and warned the Lib Dems against "an ideological merger" with the Tories' economic policy. | Backing the amendment, party member Naomi Smith accused Chancellor George Osborne of inflating the housing market with a "mortgages for votes" scheme and warned the Lib Dems against "an ideological merger" with the Tories' economic policy. |
| And Gareth Epps said the party risked going into the next election with a "complete vacuum" in economic policy. | |
| Ahead of a separate debate on tax later, the Lib Dem leader also restated that party policy was not to raise the top rate of tax back to 50p. | Ahead of a separate debate on tax later, the Lib Dem leader also restated that party policy was not to raise the top rate of tax back to 50p. |
| The current 45p rate was higher than during Labour's 13 years in power, he said, and the party's emphasis was on trying to shift the burden of tax away from taxes on work and enterprise to those on assets, such as property. | The current 45p rate was higher than during Labour's 13 years in power, he said, and the party's emphasis was on trying to shift the burden of tax away from taxes on work and enterprise to those on assets, such as property. |