Cable: Insists plans are costed

The Liberal Democrats will not make spending commitments unless they are fully costed and funded, Vincent Cable has pledged.

His comments came as the party set out a detailed breakdown of its spending pledges alongside figures on how they would be paid for.

Lib Dems are hitting back on public spending following a Labour assault.

The party's opponents say its plans are uncosted and have predicted a raft of tax rises to pay for the pledges.

But speaking at the party's conference, the Lib Dem Treasury spokesman was set to warn delegates there were "painful economic realities" which would have to be addressed.

"Budgets have to add up. Choices are needed in public spending," he was expected to say.

Joking that he had become known as "Dr No" for rejecting calls for extra spending, Cable was also pledging to adopt a traditional liberal economic agenda.

The Lib Dems are planning to make savings in government spending averaging some £5 billion a year over the course of the next parliament.

And a new 50 per cent top rate of tax on earnings over £100,000 will pay for the abolition of university tuition fees, free personal care for the elderly and lower local taxes.

The party insists it is planning no other tax rises to pay for its manifesto.

And campaign chief Lord Razzall dismissed Conservative criticism of Lib Dem plans, saying the attack was based on "Harry Potter economics".

Speaking to journalists, Cable also insisted his party's figures were based on parliamentary answers from the government and research by the House of Commons library.

"We are saving more than we are going to spend, we are trying to be conservative," he said.

Under the party's plans the Department for Trade and Industry would be axed, along with identity cards, child trust funds and parts of the Eurofighter defence programme.

"Our approach is to say there are bits of government that would have to contract," said Cable.

"I'm not trying to pretend the Liberal Democrats are offering civil service jobs for life, because we are not."

He rejected suggestions the party had adopted a Thatcherite agenda.

"There is financial discipline...whether you call that right or left I don't know," said Cable.

But with the party pledging to end some key industrial subsidies and adopt policies that could see more defence contracts going oversees, Cable admitted there could be a political price to pay.

"We do accept that there will be occasions when what we say on financial discipline means awkward consequences," he said.