Cities Outlook launch - with Vince Cable

Vince Cable was star guest at the launch of Cities Outlook today.  

In my interview with the Lib Dem Shadow Chancellor, he set out his plans for reducing the massive fiscal deficit - echoing the points made by Nick Clegg in the FT last Friday.

Vince would focus on spending cuts (rather than tax rises). No department should be protected. Cuts would include scrapping Child Trust Funds, scaling back Family Tax Credits, and limiting public sector pay. Sudden cuts straight after the election could plunge the economy back into a prolonged recession. If Vince were Chancellor, he wouldn't start cutting the deficit until certain economic criteria are met - related to growth, jobs, credit availability, etc.

On RDAs, he would keep some - like One North East and Yorkshire Forward - but scrap the rest. Here's Vince, writing for The Independent today:

"RDAs have largely failed and waste large sums. Where they work well and have local support, as in the North East and Yorkshire, they should remain albeit refocused. Others should be scrapped with the more valuable activities devolved to local government or City Regions, with big savings overall."

On housing, he was very sceptical about the Government's housebuilding targets ("absurd") - and questioned whether we need all those new houses at all. He basically thinks that Kate Barker focused not on housing need, but on housing demand - which had been artificially boosted by the credit bubble. He called for a complete revision of the need for new housing - and urged us to focus instead on bringing empty homes back into use.

He also set out his plans for a National Infrastructure Bank, and repeated his call for business rates to be fully returned to local councils - something we strongly support.

Two little-known facts about Vince: (1) He was a special adviser to the late John Smith, when he was Secretary of State for Trade & Industry in the Callaghan Labour Govt, and (2) He went for the Labour nomination in Hampstead in 1979, but was beaten to it by Ken Livingstone.

Oh, and he signed his book for me.