Vince Cable

Vince Cable MP
Secretary of State for Business Innovation and Skills
Incumbent
Assumed office 12 May 2010
Preceded by	Peter Mandelson
Deputy Leader of the Liberal Democrats
Incumbent
Assumed office 2 March 2006
Leader	Sir Menzies Campbell Nick Clegg
Preceded by	Sir Menzies Campbell
Liberal Democrats Treasury Spokesman
Incumbent
Assumed office 12 June 2003
Leader	Charles Kennedy Sir Menzies Campbell Nick Clegg
Preceded by	Matthew Taylor
Acting Leader of the Liberal Democrats
Member of Parliament for Twickenham
Incumbent
Assumed office 1 May 1997
Preceded by	Toby Jessel
Majority	9,965 (19.3%)
Personal details
Born	(1943-05-09) 9 May 1943 York, England
Political party	Liberal Democrats
Spouse(s)	Olympia Rebelo (d. 2001); Rachel Smith (from 2004)
Children	3
Alma mater	Fitzwilliam College, Cambridge, University of Glasgow
Occupation	Economist

John Vincent Cable, known as Vince Cable (born 9 May 1943) is a British politician. He has been Member of Parliament for Twickenham since 1997 and the Liberal Democrats' main economic spokesperson since 2003. On 12 May 2010, Vince Cable was appointed Business Secretary in the cabinet of the Conservative-Liberal Democrat coalition government.

Cable studied economics at university and became an economic advisor to the Kenyan government in 1966. He was an advisor to the British government and then the Commonwealth Secretary-General in the 1970s and 80s. He served as Chief Economist for the oil company Shell from 1995–97.

Cable was elected as deputy leader of the Liberal Democrats in the House of Commons in March 2006 and following Sir Menzies Campbell's resignation was acting leader for two months from 15 October 2007, until the election of Nick Clegg.

Cable has had a high profile since the global financial crisis of 2007–10 and has written several books on economics and trade.

Early life and education

Cable was born in York and attended Nunthorpe Grammar School. He went on to study Natural Sciences and Economics at Fitzwilliam College, Cambridge, and was President of the Cambridge Union in 1965. He was also a committee member of, and later President-Elect of, Cambridge University Liberal Club, but resigned from the Liberals before he came to serve his term of office as President. At Cambridge, he was a contemporary of the Conservative Cambridge Mafia. He later received a PhD in Economics from the University of Glasgow.

Cable lectured for a time at the University of Glasgow and at the London School of Economics. From 1966 to 1968 he was a Treasury Finance Officer to the Kenyan Government, and married Dr Olympia Rebelo; they subsequently had three children. Dr Rebelo died of breast cancer in 2001. In the 1970s he was Special Advisor to John Smith when the latter was Industry Secretary. He became Chief Economist for Shell in 1995.

Political career

At university, Cable was a member of the Liberal Party but joined the Labour Party after graduation. In 1970, he unsuccessfully fought Glasgow Hillhead for Labour, and later became a Glasgow councillor. In 1979 he sought the Labour nomination for Hampstead, losing to Ken Livingstone, who was unsuccessful in taking the seat.

In February 1982, he joined the recently-created Social Democratic Party (SDP). He was the SDP-Liberal Alliance parliamentary candidate for his home city of York in both the 1983 and 1987 general elections. Following the 1988 merger of the alliance, he lost his 1992 general election bid as a Liberal Democrat to unseat Conservative MP Toby Jessel in the Twickenham constituency, but successfully defeated Jessel at the 1997 general election. He subsequently increased his majority in the elections of 2001 and 2005.

In 2004, Cable contributed to the Orange Book and is identified with the economic liberal wing of the party. He believes that the Liberal Democrats should stand for "fairer taxes, not higher taxes", and many have seen this as a pitch for centre-right voters who did not support the Lib Dem's proposal at the 2005 general election to increase taxes on those earning over £100,000 (a policy which Cable himself is understood to be uncomfortable with).

Prior to the 2005 Liberal Democrat party conference, Cable did not rule out the possibility that the Lib Dems might form a coalition government with the Conservative Party in the event of a hung parliament at the next general election. Then party-leader Charles Kennedy said that the party would remain an "independent political force".

In late 2005/early 2006, Cable presented Charles Kennedy a letter signed by eleven out of the twenty-three frontbenchers, including himself, expressing a lack of confidence in Kennedy's leadership of the Liberal Democrats. On 5 January 2006, due to pressure from his frontbench team and an ITN News report documenting his alcoholism, Charles Kennedy announced a leadership election in which he pledged to stand for re-election. However he resigned on 7 January. Cable passed over the opportunity to run for the party leadership himself, instead supporting Sir Menzies Campbell's bid.

Deputy Leader

Cable in March 2008

Since being elected deputy leader in March 2006, Cable has continued to rise in status within the Party. He has also won plaudits for his repeated warnings and campaigns on the high level of personal debt in Britain. His was a significant voice of criticism during the Northern Rock crisis, calling for the nationalisation of the bank, capitalising on the claimed indecisiveness of both the Labour Government and Conservative opposition on the issue.

Acting leader

With the resignation of Menzies Campbell as party leader on 15 October 2007, Vincent Cable as Deputy Leader automatically succeeded him as party leader pending a leadership election. Asked on Channel 4 News that day by Jon Snow whether he would be a candidate for the leadership, he refused to rule himself in or out at such an early stage, but a few days later ruled himself out.

Cable during the 2008 party conference in Liverpool

Cable received significant acclaim during his tenure as acting party leader, with particular praise for his strong performances at Prime Minister's Questions. He was popular in the party and media for his attacks on the government's record over Northern Rock, HMRC's loss of 25 million individuals' child benefit data and the party funding scandal surrounding David Abrahams' secret donations to the Labour Party.

Cable attracted positive media attention for a joke at PMQs describing Gordon Brown's "remarkable transformation in the last few weeks from Stalin to Mr Bean, creating chaos out of order rather than order out of chaos", called by The Economist, "the single best line of Gordon Brown's premiership". This quip was prompted by the scandal about secret funding to the Labour Party.

Economic crisis

Cable is credited by some with prescience of the global financial crisis of 2007–2010. In November 2003, Cable asked Gordon Brown, then Chancellor, "Is not the brutal truth that ... the growth of the British economy is sustained by consumer spending pinned against record levels of personal debt, which is secured, if at all, against house prices that the Bank of England describes as well above equilibrium level?" Brown replied, "As the Bank of England said yesterday, consumer spending is returning to trend. The Governor said: 'there is no indication that the scale of debt problems have ... risen markedly in the last five years.' He also said that the fraction of household income used up in debt service is lower than it was then."

In his book The Storm, Cable writes "The trigger for the current global financial crisis was the US mortgage market and, indeed, the scale of improvident and unscrupulous lending on that side of the Atlantic dwarfs into insignificance the escapades of our own banks." In an interview about the book, Cable was asked whether he had warned about this. Cable replied, "No, I didn’t. That’s quite true. ... But you’re quite right, and one of the problems of being a British MP is that you do tend to get rather parochial and I haven’t been to the States for years and years, so I wouldn’t claim to have any feel for what’s been going on there."

Speaking about the takeover of HBOS by Lloyds TSB in fallout from the credit crunch in September 2008, Cable labelled the hedge funds which profit from short-selling as "masters of the universe".

Cable has also been vocal over the bonus culture in the banking system. He has called for bonuses to all bank employees to be frozen.

However, Cable has been criticised by some, Conservatives particularly, for 'flip-flopping' on issues in connection with the crisis. For example, he is accused of criticising the Government's policy of 'quantitative easing', when in January 2009 he used the phrase "the Robert Mugabe school of economics", while in March 2009 he said, "directly increasing the amount of money flowing into the economy is now the only clear option". He has responded to deny this claim, saying that he had been warning of the dangers if QE was not managed properly, and the Liberal Democrats also have responded that he was making the point that QE "needed to be managed with a great deal of care".

On the issue of fiscal stimulus, Cable told the BBC in October 2008, "it is entirely wrong for the government to assume the economy should be stimulated by yet more public spending rather than tax cuts". In February 2009, however, he said, "we believe — and the Government say that they believe — in the need for a fiscal stimulus. Despite the severe financial constraints on the public sector, we believe that such a stimulus is right and necessary".

On the principle of the independence of the Bank of England, Cable said at the 2008 Liberal Democrat party conference, "The Government must not compromise the independence of the Bank of England by telling it to slash interest rates." The following month, though, he called on the Chancellor to urge the Governor of the Bank to make "a large cut in interest rates". The Liberal Democrats have responded that this in no way changes their policy on Bank of England independence.

Expenses

Cable's constituency office

A Twickenham resident, Vince Cable commutes by train into central London daily and so claims the 'London Supplement' instead of the Additional Costs Allowance. However, the Daily Telegraph in May 2009 reported that he had been unaware that he was entitled to the London Supplement and so in 2004 wrote to the Fees Office to ask if he could receive retrospective payments for 2002–03 and 2003–04. The Fees Office refused the request, informing Cable that these accounts were already closed.

When overall MP allowances are ranked, Mr. Cable came in 568th for 2007–08 (out of 645 MPs). The Daily Telegraph also noted that he did not take a recent 2.33% salary rise.

Coalition government

Following the 2010 United Kingdom general election Cable was again returned as MP for Twickenham. With the election resulting in a hung parliament, Cable was a key figure in coalition talks, particularly the unsuccessful negotiations with the Labour Party. The Liberal Democrats entered a coalition agreement with the Conservative Party on 11 May 2010, and Cable was appointed Secretary of State for Business, Innovation and Skills on 12 May.

Personal life

In 2004, three years after the death of his first wife Dr Olympia Rebelo, he married Rachel Wenban Smith. When appearing on BBC Radio 4's Desert Island Discs programme in January 2009, Cable revealed that he wears the wedding rings from both of his marriages.

A keen ballroom dancer, Cable has expressed his desire to win the BBC's hit TV show, Strictly Come Dancing.

See also

• Liberal Democrat Frontbench Team

Bibliography

• The Storm: The World Economic Crisis and What it Means Vincent Cable (Atlantic Books, 2009) ISBN 1848870574
• The Orange Book: Reclaiming Liberalism edited by David Laws and Paul Marshall; contributions by Vincent Cable and others (Profile Books, 2004) ISBN 1-86197-797-2
• Regulating Modern Capitalism (Centre for Reform Papers) Vincent Cable (Centre for Reform, 2002) ISBN 1-902622-36-7
• Commerce (Liberal Democrat Consultation Papers) Vincent Cable (Liberal Democrat Publications, 2002) ISBN 1-85187-688-X
• Globalization: Rules and Standards for the World Economy (Chatham House Papers) Vincent Cable, Albert Bressand (Thomson Learning, 2000) ISBN 1-85567-350-9
• Globalisation & Global Governance Vincent Cable (Thomson Learning, 1999) ISBN 0-8264-6169-7
• Preparing for EMU: A Liberal Democrat Response (Centre for Reform Papers) Vincent Cable (Centre for Reform, 1999) ISBN 1-902622-06-5
• China and India: Economic Reform and Global Integration Vincent Cable (Royal Institute of International Affairs, 1995) ISBN 1-899658-00-9
• Global Superhighways: The Future of International Telecommunications Policy (International Economics Programme Special Paper) Vincent Cable, Catherine Distler (Royal Institute of International Affairs, 1995) ISBN 0-905031-97-0
• The World's New Fissures Vincent Cable (Demos, 1995) ISBN 1-898309-35-3
• Trade Blocs: The Future of Regional Integration edited by Vincent Cable and David Henderson (The Brookings Institution, 1994) ISBN 0-905031-81-4
• Commerce of Culture: Experience of Indian Handicrafts, Vincent Cable (Lancer International, 1990) ISBN 81-7062-004-X
• Developing with Foreign Investment edited by Vincent Cable and Bishnodat Persaud (Routledge, 1987) ISBN 0-7099-4825-5
• Economics and the Politics of Protection: Some Case Studies of Industries (World Bank Staff Working Papers Number 569) Vincent Cable (World Bank, 1984) ISBN 0-8213-0199-3
• Education and Social Action Programming for Cable: Conference Report edited by Vincent Thompson (Council for Educ. Technology, 1984) ISBN 0-86184-131-X
• World Textile Trade and Production Trends Vincent Cable, Betsy Baker (Economist Intelligence Unit, 1983) ISBN 0-86218-084-8
• Case Studies in Development Economics Vincent Cable (Heinemann Educ., 1982) ISBN 0-435-33937-0
• The Role of Handicrafts Exports: Problems and Prospects Based on Indian Experience (ODI Working Paper) Vincent Cable (Overseas Development Institute, 1982) ISBN 0-85003-086-2
• British Electronics and Competition with Newly Industrialising Countries Vincent Cable, Jeremy Clarke (Overseas Development Institute, 1981) ISBN 0-85003-076-5
• Evaluation of the Multifibre Arrangement and Negotiating Options Vincent Cable (Commonwealth Secretariat, 1981) ISBN 0-85092-204-6
• British Interests and Third World Development Vincent Cable (Overseas Development Institute, 1980) ISBN 0-85003-070-6
• Britain's Pattern of Specialization in Manufactured Goods With Developing Countries and Trade Protection (World Bank Staff Working Paper No 425/8 Oct) Vincent Cable, Ivonia Rebelo (World Bank, 1980) ISBN 0-686-36204-7
• World Textile Trade and Production Vincent Cable (Economist Intelligence Unit, 1979) ISBN 0-900351-85-3
• South Asia's Exports to the EEC: Obstacles and Opportunities Vincent Cable, Ann Weston (Overseas Development Institute, 1979) ISBN 0-85003-068-4
• World Textile Trade and Production Vincent Cable (Economist Intelligence Unit, 1979) ISBN B0000EGG8M
• Import Controls: The Case Against Vincent Cable (Fabian Society, 1977) ISBN 0-7163-1335-9
• Whither Kenyan Emigrants? Vincent Cable (Fabian Society, 1969) ISBN 0-7163-2018-5

External links

• Dr Vincent Cable MP official site
• Vincent Cable MP official Liberal Democrats profile
• Twickenham Liberal Democrats official constituency site
• Contributions in Parliament at Hansard 1803–2005
• Voting record at Public Whip
• Record in Parliament at TheyWorkForYou
• Website at ePolitix
• Vince Cable: Acting like a leader BBC News, 30 November 2007
• News Review interview: Vince Cable The Sunday Times, 22 March 2009
• Gold standard?. Third Way Magazine, 11 May 2009
• Vince Cable: Beneath the halo The New Statesman, September 2009