Nick Clegg on Saturday claimed Ken Clarke as one of their own, but the equalities minister said:

More placing of clear blue water between the Lib Dems and their coalition partners, perhaps.
13.42 Tom Rayner, politics producer for Sky News, is listening to Tim Farron talk about A-lists and all-female short lists for new MPs. The straight-talking party president admits:

13.25 Paddy Ashdown warns of the euro crisis: "A terrifying and very dangerous jolt is about to happen. It's going to be very turbulent." And Vince Cable tells the Guardian's fringe event: "The whole existence of Europe is in jeopardy."

13.17 Employers' group the CBI is not wholly impressed by Vince Cable's views on executive pay - they say introducing ratios is "overly simplistic" in a global market and the business secretary is kicking a "political football". Director General John Cridland says:

And Miles Templeman, of the bosses' think tank the Institute of Directors, says:

13.13 Nick Clegg is talking to Sky News.
"Nobody is comfortable that there is going to be a stand off," Clegg says of the Dale Farm evictions.
He is asked about the stabbing of an alleged burglar - he says he doesn't know the facts and it's a matter for the police and courts, adding the law states homeowners have a right to self-defence.
High society: yesterday Lib Dems voted for the legalisation of drugs for personal use
We are losing the war on drugs, he says of the new Lib Dem policy tolegalise drugs. "Let's be led by the evidence," he says. "We'd be crazy not look at new ways [of keeping young people off drugs]."
"I'm 44 years old. I've got bags of energy... I certainly will be fighting the next election," he says of mutterings about him quitting after this term.

He's got quite a dry-sounding throat - better rest up before that Wednesday night key note.
12.54 The web reaction seems to be: Cable knows the economy is on the ropes - but where were his plans for growth?

Louise Armistead, the Telegraph's chief business reporter in Birmingham, tweeted:

Vince gets standing ovation but clearly not one of his most rousing speeches. Corp/city took brunt of rhetoric
Last yr bankers were spivs and gamblers, this year... Flashers?? #vince
Chuka Umunna, shadow minister for small business managed to demand 'growth' three times in 140 characters:

Paul Waugh, editor of Politics Home, said:

Cameron Penny, who works for Cicero Global investment fund, said there will be no manufacturing without those Wicked Bankers:

And BBC Producer Paul Twinn was not heartened by promises of flagging living standards

12.46 Instant reaction: Vince Cable's speech was strikingly, overwhelmingly gloomy about Britain's short-term financial prospects. These final lines capture the mood:

12.20 Vince Cable is up. Read his speech in full here:
He starts on the crisis. A dire warning: "We now face a crisis that is the economic equivalent of war," he says.
"The financial crisis is still with us. We can see that recovery has stalled in the US and the position in the Eurozone is dire."
"Many of our problems are home-grown. Gordon Brown regularly advised the rest of the world to follow his British model of growth. But the model was flawed." He says: "I regret this year is that we did not secure tighter control on bank pay and bonuses." He hails the new Jaguar Land Rover plant to be opened in Britain, saying: "That’s what I mean by a business recovery, cars not casinos."
"Many of our problems are home-grown. Gordon Brown regularly advised the rest of the world to follow his British model of growth. But the model was flawed." He says: "I regret this year is that we did not secure tighter control on bank pay and bonuses." He hails the new Jaguar Land Rover plant to be opened in Britain, saying: "That’s what I mean by a business recovery, cars not casinos."
On the cuts, he says they were left with a "dangerous, unsustainable budget deficit, and says: "Cutting it is a thankless and unpopular task, but unavoidable if our country and party are to be taken seriously."
"Financial discipline is not ideological; it is a necessary precondition for effective government... the progressive agenda of centre left parties cannot be delivered by bankrupt Governments."
He says others treat government like Father Christmas, dropping economic presents down the chimney if they hand out tax cuts. He says thinking tax cuts will draw back non-dom billionaires is a "childish fantasy."
On banks, he calls for Vickers to be implemented. "At present, banks are offered a one way bet. If they gamble and win; they fill up the bonus pool. But when they lose, the taxpayer pays."
"Rogue" banks are "exposing taxpayers to the risk of exploding financial weapons of mass destruction," he says. In a bizarre analogy using trousers, he says there has been "feast or famine" in bank lending - he calls for steady lending growth to small businesses.
On stimulus, he says he wants to cut "red tape which is suffocating growing companies" but in a jibe at ideas credited to Steve Hilton, Cameron's advisor, he says: "What I will not do though is provide cover for ideological descendents of those who sent children up chimneys. Panic in financial markets won’t be stopped by scrapping maternity rights."
Biggest problem is lack of demand he says, in a rallying cry to the Keynesians. Government can act - he cites the 'Green Deal', land auctions for social housing, infrastructure building, broadband and house building as options.
Living standards are being squeezed by inflation and Britain has been left poorer by the crash. "The public will only accept continuing austerity if it is seen to be fair."
"Yet there is currently a great sense of grievance that workers and pensioners are paying the penalty for a crisis they did not create. I want a real sense of solidarity," he says.
"People aren’t thinking about 10 years ahead when they are worrying about how to survive the next 10 days to payday. The truth is that there are difficult times ahead, that Britain’s post war pattern of ever rising living standards has been broken by the financial collapse."
On the mansion tax: He says the "wealthy must pay their share". He says land and property values have been artificially inflated in the last boom. He says mansion owners are saying the same tax as people who live in semis, saying of critics of the policy: "You wonder what part of the solar system they live in."
On CEO pay, he says: "Surely pay should be transparent; not hidden from shareholders, and the public. I want to call time on pay outs for failure. It is hard to explain why shareholders can vote to cut top pay but the managers can ignore the vote."
He concludes: "In the Coalition Agreement we promised to put fairness at the heart of all we do as we rebuild our broken economy from the rubble. Liberal Democrats know that you can’t do one without the other."
12.18 Delegates have just voted for further work to develop proposals by which shares in state-owned banks in RBS and Lloyds will be distributed, "In order to empower the public and give them something back in return for bailing out the two banks."
11.52 Vince Cable is up in half an hour. His speech has been heavily trailed and he's expected to take aim at executive pay, saying the city must end "payouts for failure".

In contrast to Tim Farron yesterday - who said a split was "inevitable" in three or four years, he has ruled out a 'coalition divorce', saying he was "positively committed" to the government and his colleagues are "most definitely not talking about coalition divorce". He told the BBC:

11.41 Daniel Knowles on the comment desk takes aim at the Liberal Democrat policy on press regulation and a clause calling for jail terms for journalists who handle private data - which could include expenses claims or bank account statements.

11.34 City reporter Donna Bowater has been talking to Vince Cableahead of his mid-day speech. He hails the announcement by Jaguar Land Rover to build a new £335m plant in the Midlands.

He said: "One of the attractions of the West Midlands is this is the heartland of the motor industry. There's a tradition of skilled labour, which is absolutely crucial to their business and I think they are showing confidence in the fact that we've put the boat out for them, we've shown them that we want to work with them. They've concluded this was the best place to be."

11.30 Do Lib Dems break banks? More from our man in Birmingham,James Kirkup.

11.08 A conference attendee has been in touch. "Is it not rather strange that with unemployment climbing and growth at a near-standstill the employment minister didn't talk about jobs?" he says.
11.01 Blogger and troublemaker Harry Cole drops the live blog a line. He's not impressed with the Lib Dem riots motion - particularly the line which says wrongdoing is found "at the top and bottom of the socio-economic scale."

10.43 Ed Davey, the employment and post minister, is up.
He's doing a warm up act for his boss: "Vince was right on the crash, right on the banks, and right on Rupert Murdoch."

On post offices
He says Labour closed more post offices than Major and Thatcher, and says the days of closure programmes in the post office "are over". He says they will become the "front office" for government and is encouraging local councils and banks to use them.
He proposes the Post Office becomes a mutual, rather than a nationalised business.
He says "sub-post offices" will be merged with the main desk of the business.

On employment law
Mothers and fathers should be able to choose how they divide their paternity and maternity leave, he says.
Mothers and fathers should be able to choose how they divide their paternity and maternity leave, he says.
The Lib Dems ended forced retirement at 65, he says.
Jobs laws "stop job creation" he says. Employment tribunals as they stand only benefit lawyers, so he wants a focus on conciliation rather than confrontation.
Jobs laws "stop job creation" he says. Employment tribunals as they stand only benefit lawyers, so he wants a focus on conciliation rather than confrontation.
Supermarkets
He says big supermarkets are ripping off farmers - and are demanding payments to put products on a shelf. He says he will create a supermarket adjudicator with a "tough new code of practice" to "stamp out bad behaviour." He is working on a Consumer Bill of Rights - but is also holding a "bonfire of red tape."
He ends: "Go back to your constituencies and campaign on our record in government."
Read his full speech here: Liberal Democrats Party Conference 2011: speech by Ed Davey
Read his full speech here: Liberal Democrats Party Conference 2011: speech by Ed Davey
10.40 The motion condemning tough prison sentences and kicking looters out their council houses passes almost without objection.
10.35 Deputy editor Benedict Brogan blogs: No 10 is desperate to spike Vince Cable

10.30 James Kirkup sends this dispatch on how the Telegraph's run down of the most influencial Lib Dems is gripping delegates.

10.10 The conference is now voting on a motion responding to the riots.

The motion says:
• "Sentencing is a matter for the courts" - not politicians.
• there is a "lack of respect for the law" amongst rich people too.
• censoring social networking is unjustified - and nor is using curfews and "over-using" dispersal orders against rioters justified.
• the "large number of lengthy custodial sentences" and councils who evict rioters are to be condemend.
• cuts to careers advice services are in part to blame for rioting.
Brian Paddick, London Mayoral candidate and former riot cop in the 1980s riots, is scathing of some lines in motion. It's untrue that there are too few trained officers, as the motion claims, he says.

09.50 The motion on phone hacking is carried unanimously. Lots of pledges of admiration to a "free press" and "investigative journalism." condemnation of Rupert Murdoch and the (already ) illegal practice of phone hacking.
But there was no debate on this line in the motion:
Introduce custodial sentences, commensurate with the seriousness of the offence, for breaching section 55 of the Data Protection Act (unlawful obtaining of data).
... which could cover sins such as getting hold of ex-directory phone numbers, or some would try to argue, expenses claims. It would be a radical and wide-ranging change in the laws restricting journalists - and not merely the tabloids.
09.45 Former MP, libel reform campaigner and Hacked Off campaign worker Dr Evan Harris is up.
In libel cases there should be a stronger public interest defence for publishers who get things wrong but who behaved responsibly, in the public interest and who apologised quickly, he says.
But he defends rulings on privacy such as that from Justice Eady onMax Mosley. He pays tribute to the bravery of the Dowler family in meeting Murdoch and the party leaders.

09.39 Lawyers for the victims Mark Lewis is up. He accuses "the press" of "atrocities".
"People ask me at conference if I'll be going to the News International party. The News International party was the party of government for 30 years," he says, citing the 1992 'The Sun Wot Won It' headline.
But he adds state control of the media is as 'Murdocracy'. He attacks the cuts to legal aid funding and reforms to no-win no-fee arrangements as preventing people from challenging corporations.

09.30 Delegates now debating phone hacking - but it's really about press reform at large. They say Britain's libel regime is "internationally reviled" and Rupert Murdoch has too much power.
Simon Hughes is up. We must stand up for a free press and good investigative journalism - but we need a responsible press too.

He is calling on the government to block the Met's Official Secrets Act probe into the Guardian newspaper.
He says it's not about footballers - people living on the estates of his Southwark constituency were also at risk of targetting. Hughes says criminality went beyond News International and others must be held to account.
He says it is "obvious" more senior people were involved than the two prosecuted.
"The activities of the press at the moment are clearly indefensible," he says, adding there must be "robust action."
09.20 Over the weekend Nick Clegg vowed any attempt to cut the 50p tax rate would be met with the introduction of a mansion tax. But Ian Cowie, our Head of Personal Finance, says that plan is now doomed -because £1m+ houses are now the "norm" in 41 towns.

Its analysis of just under 1m properties across Britain found there are now 41 towns which have a higher proportion of £1m house prices than London. Virginia Water, Surrey, was second most property prosperous with 44pc of homes priced at £1m or more but Much Hadham and Radlett in Hertfordshire were not far behind with a third or more of all their house prices exceeding £1m.

Taxing times: Clegg threatens to whack a tax on £1m+ homes
09.15 In the Telegraph today broadcaster Iain Dale today unveils hisTop 50 most influencial Lib Dems.

09.00 Coming up in Birmingham today:
• 09.30: Emergency debate on phone hacking. Delegates are proposing newspapers are subject to large fines if they breach the PCC code of conduct, banning people they don't think "proper" from owning newspapers, and jailing journalists who breach the Data Protection Act by "unlawfully obtaining data" - such as getting hold of ex-directory phone numbers. There's a confusing line on "supporting the existing law on privacy". Interesting stuff, given phone hacking is already very much illegal under the Regulation of Investigatory Powers Act 2000. The motion says:

Well see how many delegates will echo those fine words from the floor.

• 10.30 Speech by Ed Davey, the employment minister.

Read an advanced copy of the text here: Liberal Democrats Party Conference 2011: speech by Ed Davey

• 12.20 Speech by Vince Cable, business secretary.
James Kirkup has the preview:

Mr Cable will today publish a government "discussion document" looking at possible changes to company laws and regulations. He will outline new rules requiring companies to disclose more information about their directors' compensation packages.
In the discussion paper, Mr Cable says that the "disconnect" between pay and long–term performance suggests "something dysfunctional about the market in executive pay or a failure in corporate governance arrangements".
• 14.30 Motion on tacking violence against women, brought by Home Affairs select committee chair Tom Brake MP. It looks at issues including domestic violence, child prostitution and female circumcision.
• 15.15 Nick Clegg is taking a Town Hall-style Q&A session. Was Tim Farron's morale booster enough to convince the faithful to stand by their leader? We'll find out.
• 16.00 Motion on the Digital Economy, brought by Julian Huppert. The Digital Economy Act was pretty controversial with many activists and Huppert is demanding they "protect the essential freedom of the internet", looking at issues of data ownership and net neutrality. More on this later.
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