Clegg nails his trousers to Conservatives’ mast

NICK CLEGG, the deputy prime minister, is betting on the Lib Dems forming a second coalition with the Conservatives and has effectively written off any prospect of a deal with Labour, despite the unrest it will cause in his own party.

In his keynote conference speech in Birmingham yesterday, his message to the party could not have been clearer. He told them "never, ever trust Labour with our economy again". His aides said this did not mean he was ruling out working with Labour in the future but he will have to eat those words, or quit as party leader, if the Lib Dems seek to form a government with Labour after the next election.

Clegg unexpectedly focused most of his fire on Labour, calling Ed Miliband's claim to be the enemy of vested interest “risible” when the unions had been able to "buy themselves" a party.

It may have been a successful week for Clegg in terms of regaining the trust of his own party, but with Labour heading to their own conference this weekend in Liverpool, he can expect a roasting from Labour's leadership for siding so comprehensively with David Cameron.

Meanwhile, the prime minister is due to meet Barack Obama for talks on the margins of the United Nations – and the subject will be possible concerted action to stimulate growth in the US and British economies.

Cameron is coming under growing pressure to pump more money into the British economy. The latest business leader to criticise coalition policy is former Asda boss Allan Leighton who said today on BBC Radio Five Live that the decision to raise VAT was a mistake.

Leighton, who is touring studios promoting his book Tough Calls, says George Osborne, the chancellor, must go for a fiscal stimulus by cutting taxes, including VAT and the 50p tax on high earners to regain consumer confidence.

He also dismisses Osborne's mantra that there is no 'Plan B' for the economy.

The problem for Cameron is that his now permanent bedfellow, Nick Clegg, has promised his party he won't allow Osborne to cut the 50p tax or VAT unless he cuts taxes for the poorest first. ·