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| Nick Clegg persuades Lib Dems to stick with austerity | Nick Clegg persuades Lib Dems to stick with austerity |
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| Nick Clegg has persuaded his party to stick to the path of austerity after promising he would argue for higher taxes on the rich and reject Conservative plans for spending cuts going into the next election. | Nick Clegg has persuaded his party to stick to the path of austerity after promising he would argue for higher taxes on the rich and reject Conservative plans for spending cuts going into the next election. |
| The deputy prime minister won a controversial motion saying the Liberal Democrats were right to sign up to reduce the deficit through cuts to public spending. | The deputy prime minister won a controversial motion saying the Liberal Democrats were right to sign up to reduce the deficit through cuts to public spending. |
| After two hours of intense debate at the party's conference in Glasgow, members backed Clegg and rejected an amendment that proposed relaxing the "fiscal mandate" – the coalition's plan to reduce Britain's debts and deficit. | After two hours of intense debate at the party's conference in Glasgow, members backed Clegg and rejected an amendment that proposed relaxing the "fiscal mandate" – the coalition's plan to reduce Britain's debts and deficit. |
| A string of Lib Dem heavyweights lined up in favour of the leadership's position, including Vince Cable, the business secretary. He had been expected to stay away from the debate, but decided to turn up at the last minute after his absence was interpreted as a failure to back Clegg over the economy. | A string of Lib Dem heavyweights lined up in favour of the leadership's position, including Vince Cable, the business secretary. He had been expected to stay away from the debate, but decided to turn up at the last minute after his absence was interpreted as a failure to back Clegg over the economy. |
| The party leader appeared to win round a sceptical audience by promising that Lib Dems would argue in 2015 for "more fair taxes" and reject any Conservative argument for reducing the deficit purely through spending cuts. | The party leader appeared to win round a sceptical audience by promising that Lib Dems would argue in 2015 for "more fair taxes" and reject any Conservative argument for reducing the deficit purely through spending cuts. |
| Summing up the debate, Clegg urged his members to be brave and "stick to the plan". | Summing up the debate, Clegg urged his members to be brave and "stick to the plan". |
| "None of that ties our hands on tax and spend," he said. "I am against 100% spending cuts. We will go into the next election in favour of more fair taxes … Nothing prevents us from having independent policies." | "None of that ties our hands on tax and spend," he said. "I am against 100% spending cuts. We will go into the next election in favour of more fair taxes … Nothing prevents us from having independent policies." |
| He added: "Please be careful with what you wish for. If we start messing about with the big goalposts stuck in the ground that set the frame … we will destroy jobs and decrease prosperity. The only people who will welcome what we do today if we adopt these amendments are George Osborne and Ed Balls." | He added: "Please be careful with what you wish for. If we start messing about with the big goalposts stuck in the ground that set the frame … we will destroy jobs and decrease prosperity. The only people who will welcome what we do today if we adopt these amendments are George Osborne and Ed Balls." |
| Clegg's motion recognised Britain's "difficult financial position" and "the dangers of failing to bring the public finances under control". | Clegg's motion recognised Britain's "difficult financial position" and "the dangers of failing to bring the public finances under control". |
| It is part of a Lib Dem strategy to "own the recovery" and stop the Tories taking all the credit for the economy starting to improve. | It is part of a Lib Dem strategy to "own the recovery" and stop the Tories taking all the credit for the economy starting to improve. |
| However, the Social Liberal Forum, a group on the left of the party, challenged Clegg's argument by tabling two amendments. One called for the economy to be "rebalanced", which would mean borrowing more money. Another wanted a total removal of borrowing limits for councils to boost social housing and a wider remit for the Bank of England to boost employment and incomes. | However, the Social Liberal Forum, a group on the left of the party, challenged Clegg's argument by tabling two amendments. One called for the economy to be "rebalanced", which would mean borrowing more money. Another wanted a total removal of borrowing limits for councils to boost social housing and a wider remit for the Bank of England to boost employment and incomes. |
| Naomi Smith, an activist from the Social Liberal Forum, said the party leadership was guilty of an "ideological merger" with the Tories on economic policy. | Naomi Smith, an activist from the Social Liberal Forum, said the party leadership was guilty of an "ideological merger" with the Tories on economic policy. |
| She was cheered as she told members that the Lib Dems should not collude with Osborne on cuts to public services. | She was cheered as she told members that the Lib Dems should not collude with Osborne on cuts to public services. |
| Moving one amendment, Smith said the "heart and soul" of the Lib Dems knew that neither the Tories nor Labour offered the best economic policy. | Moving one amendment, Smith said the "heart and soul" of the Lib Dems knew that neither the Tories nor Labour offered the best economic policy. |
| "Unamended, this motion commits us to Osborne's fiscal mandate," she said. "But what does that fiscal mandate actually mean? It doesn't simply mean reducing the deficit. It also means we collude and condone Osborne's plan under which the deficit is reduced 100% by cuts to vital public services and capital spending, and nothing at all from tax. | "Unamended, this motion commits us to Osborne's fiscal mandate," she said. "But what does that fiscal mandate actually mean? It doesn't simply mean reducing the deficit. It also means we collude and condone Osborne's plan under which the deficit is reduced 100% by cuts to vital public services and capital spending, and nothing at all from tax. |
| "We must not vote for an ideological merger with the Conservative party's economic policies. We make policy and then we, conference, empower our leaders to broker compromises in coalition." | "We must not vote for an ideological merger with the Conservative party's economic policies. We make policy and then we, conference, empower our leaders to broker compromises in coalition." |
| Speaking for the motion, Steve Webb, a pensions minister, said the amendments could not be acceptable because they amounted to rewriting the coalition's economic plans. | Speaking for the motion, Steve Webb, a pensions minister, said the amendments could not be acceptable because they amounted to rewriting the coalition's economic plans. |
| "We have the risk of a famous Liberal Democrat trait of snatching defeat from the jaws of victory. We stuck with it 12 months ago, when we were in difficult times; we stuck to our guns. We have been proven right. We have suffered the political pain of austerity." | "We have the risk of a famous Liberal Democrat trait of snatching defeat from the jaws of victory. We stuck with it 12 months ago, when we were in difficult times; we stuck to our guns. We have been proven right. We have suffered the political pain of austerity." |
| Tim Farron, the Lib Dem president, made a forceful speech urging members not to retreat from austerity at the 11th hour. | Tim Farron, the Lib Dem president, made a forceful speech urging members not to retreat from austerity at the 11th hour. |
| He said it would be a huge irony if the party backed away from its "staggeringly tough decisions" just as economic recovery is starting to take hold. | He said it would be a huge irony if the party backed away from its "staggeringly tough decisions" just as economic recovery is starting to take hold. |
| Farron said there was "nothing progressive about bottling out of hard decisions to save our finances". | Farron said there was "nothing progressive about bottling out of hard decisions to save our finances". |
| Sir Malcolm Bruce, the party's former Treasury spokesman, said the amendments supporting a relaxation of the fiscal mandate were dangerous and irresponsible, while Sharon Bowles, a Lib Dem MEP, argued that loosening fiscal rules would be like "going on a binge in the middle of a diet". | Sir Malcolm Bruce, the party's former Treasury spokesman, said the amendments supporting a relaxation of the fiscal mandate were dangerous and irresponsible, while Sharon Bowles, a Lib Dem MEP, argued that loosening fiscal rules would be like "going on a binge in the middle of a diet". |
| "Every cookie means more time in the gym. Now is not the time to say change the fiscal envelope," she said. | "Every cookie means more time in the gym. Now is not the time to say change the fiscal envelope," she said. |
| However, dozens of grassroots members argued that the unamended motion would mean the Lib Dems going into the next election backing the economic arguments of the Tories and Osborne. | However, dozens of grassroots members argued that the unamended motion would mean the Lib Dems going into the next election backing the economic arguments of the Tories and Osborne. |
| Summing up, David Howarth, a former MP, said the amendments were not "leftwing and Trotskyist" in tone but "centrist" and moderate. He called on the party to reject the economics of Osborne. | Summing up, David Howarth, a former MP, said the amendments were not "leftwing and Trotskyist" in tone but "centrist" and moderate. He called on the party to reject the economics of Osborne. |
| Paul Holmes, another former MP, also urged the party to support social housing and write its own manifesto, not "a coalition manifesto". | Paul Holmes, another former MP, also urged the party to support social housing and write its own manifesto, not "a coalition manifesto". |
| However, members rejected all amendments that were not backed by the leadership, including those on council borrowing limits and the Bank of England. | However, members rejected all amendments that were not backed by the leadership, including those on council borrowing limits and the Bank of England. |
| The leadership's motion agrees to look at pooling council borrowing powers and to examine ways of encouraging the construction of more social housing. | The leadership's motion agrees to look at pooling council borrowing powers and to examine ways of encouraging the construction of more social housing. |
| Later on Monday, the Lib Dems were due to launch a fresh attempt to kickstart the social housing market. Don Foster, the communities minister, will say people or groups who want to build their own homes can apply for cash from a £65m fund if they build "mini-estates" that include social housing as well. | Later on Monday, the Lib Dems were due to launch a fresh attempt to kickstart the social housing market. Don Foster, the communities minister, will say people or groups who want to build their own homes can apply for cash from a £65m fund if they build "mini-estates" that include social housing as well. |
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