According to today’s Observer the Liberal Democrat Shadow Chancellor, Vince Cable has held detailed talks with the top official at the Treasury about the Liberal Democrats‘ economic policies.

Both Civil Servants and the political parties are now taking the prospect of a hung parliament seriously, and it looks as though they are paving the way.  It is unclear whether talks have taken place with Liberal Democrat Shadow Chancellors before previous general elections in the past, but Vince Cable has apparently declared himself willing to serve as the chancellor following the next election.

As Whitehall gets ready for a possible hung parliament, Vince Cable told the Observer that he had been questioned by Nicholas Macpherson, the Treasury’s permanent secretary, about the Liberal Democrat’s demands in a coalition with either Labour or the Conservatives.

The talks were a sign that the Treasury is taking the prospect of his party playing a leading role in economic policy seriously in what could be the first hung parliament since 1974.

Vince Cable said

“He wanted to know what we attached priority to, and he wanted to know what we felt strongly about,”, and added that his ideas on tax and spending were well received. 

Vince Cable, whose credibility has grown throughout the economic crisis, made clear that, if he was to be offered the chancellorship in a hung parliament, he would jump at the chance.  He did not want to be “the most unpopular person in Britain” as public spending is slashed, he said, but added:

“I wouldn’t be in this business if I wasn’t willing to take the responsibility if it was to come my way.”

Vince Cable made clear he would have serious reservations about working with either Labour or the Conservatives, and he said: 

“I’m worried about both

“If either of them came back, Gordon, given his history, will be in denial about difficult decisions, and the Tories are in danger of doing foolish, precipitate things that could make the situation a lot worse.”

Vince Cable was noticeably more critical of the Conservatives’ response to the financial crisis, saying that they should score “nul points” for failing to grasp the seriousness of the situation.

“They haven’t done anything to attract praise, because they completely and totally misunderstood the problems.”