Dr. and St. Vince Cable has said he made “an honest mistake” over his VAT avoidance and that it was “embarrassing and I should have spotted it sooner”. He’s attempting to make this look like a one-off piece of financial mismanagement in order to minimise the obvious “if he can’t run his own business affairs, why should anyone else listen to him” line of questioning. But is this case really a one-off? 

A look at Vince’s parliamentary expenses claims from the last few years show a trail of financial mismanagement. His claims are littered with with late fees, reminder letters and overdue notices. His electricity supplier, British Gas and BT have all sent letters stating their intention to disconnect him for non-payment. It appears he also thought it appropriate to charge the taxpayer for £240 of fines for not paying his fees on time. By Guido’s count there were nineteen late notices or threats in 05-06, thirteen in 06-07, and eight in 07-08. Were these honest mistakes too, or complete incompetence? 

With St Vince reeling from another scandal, Guido and several co-conspirators have noticed that he has got away with this one surprisingly leniently. If this tax-avoidance had gone on while he was in government it would have ended him, but given it was so long ago, surely he should have paid more than the £500 slap-on-the-wrist for his £25,000 “oversight“? The Treasury’s rules are perfectly clear:

10% is £2,500, not £500. Pay up Vince, or are the rules different for Ministers over the small businesses they punish?

Vince Cable has taken to the pages of the FT to brief against Thresesa May and Iain Duncan Smith:

An ally of Mr Cable said: “Vince really wants to come forward with a good package for business this autumn but we want to see other departments putting their weight behind these efforts. They need to bring something to the table.”

His line is that they do not realise how serious the growth situation is, however Vince might want to make sure his own department is in order before he whispers into hacks ears. Guido understands that some officials at Business Innovation and Skills are none too happy with the drop in stature their department has had since the old man took over from Mandy. Although he had his faults, they feel Prince of Darkness made the department’s presence felt in every nook and cranny of Whitehall. They are moaning at a lack of “kudos” these days and gently remind the Minister in charge of growth that it’s going to require more than just sniping against others for not cutting enough red tape…

As the economic outlook turns from tough to terrible the pressure on the coalition is going to increase. Conservative governments have in their history and temperament the capability to stick to a tough, inevitably unpopular, fiscal line. This is not a Conservative government.

The LibDems have no such history, and in the case of Vince Cable, no such inclination. Reportedly he is already lobbying for an alternative economic strategy, a Keynesian Plan B. George Osborne is not going to alter the fundamental economic mission of the government, nor should he. So will Vince use his “nuclear option” and quit at some point? The bookies have him at 15/1 to resign from the cabinet.

Might be worth a flutter…

The most memorable sound-bite from Vince Cable’s speech will be his attack on his coalition partners and the right in general:

“What I will not do though is provide cover for ideological descendents of those who sent children up chimneys.”

Like his attack on “spivs” last year, this one will stick for all the wrong reasons. Who was it that brought an end to children being sent up chimneys? Lord Shaftesbury and his 1864 Act for the Regulation of Chimney Sweepers. Shaftesbury was a Tory. You would think Vince would remember voting on it…

Seer Vince Cable said last week…

“Britain is an oasis of calm”

Panic stations over at the British Library this morning after a doddery old man caused a security scare by losing his rucksack. A mundane every day occurrence was made somewhat more embarrassing by the fact the culprit was Vince Cable. Witnesses couldn’t help but point out the irony that at a press conference about protecting other peoples’ property, all be it intellectual, the Secretary of State was unable to look after his own.

Guido is waiting to hear back on whether it ever turned up…

The Sun mocks Cable’s “attack” on red tape…

“Way to go, Vince Cable. As the economy flatlines, the Business Secretary saves the day – by cutting regulations on the sale of chocolate liqueurs. ‘This is very radical – we are moving fast,’ declared Mr Cable as he went further by axing rules on fly spray and lowering the age for buying Christmas crackers… Thank goodness the Business Secretary didn’t do anything rash, like tackling the high taxes and red tape destroying enterprise.”

Traditionally a Minister would have walked before accusing his boss of being “very unwise” and risking  “inflaming extremism”, but no such bravery from Vince Cable who has once again fobbed off to a female journalist. Cameron’s speech, to Hampshire Conservatives no less, is undoubtedly a bid boost his parties chances in the locals next month. However there was nothing new in the speech and it is basically the government’s policy. Did Cable tell his old chum Brown he was being very unwise when he said “it is right to talk of immigration and address people’s worries and concerns. Because if we don’t, people will listen to whoever does” a few weeks before the election?

Cable is bound by collective Cabinet responsibility and was already on his final warning for his loose tongue. Cameron’s weakness is exposed by his apparent inability to sack this liability.

This time last year an economist wonk at the liberal-leaning CentreForum took a dislike to Guido’s economic foresight. Deficit denying Liberal Conspiracy made a predictably over the top attempt at playing up the difference of opinion calling Guido innumerate, an allegation later quietly withdrawn.

Subsequently a wager was drawn up with the Freethinking Economist Giles Wilkes: a book of the loser’s choice would be sent to the winner. After a year of month-after-month of above target inflation announcements by the Bank of England, Giles, a good sport and former bookie, has decided to admit early that deflation just isn’t going to happen. In fact the realisation is becoming mainstream that the danger is quite the opposite, as Guido has long pointed out, of runaway inflation resulting from QE. Inflation is always and everywhere a monetary phenomenon. Guido doesn’t want to worry anyone, but Mr Wilkes is now Vince Cable’s Special Advisor…