Cable on capitalism

The business secretary Vince Cable is delivering a stinging speech on the last day of the Lib Dem conference, targeting banks, tax avoiders and the previous Labour government.

The content of the speech has already caused controversy, and has brought into question the entire system of financial sector regulation and the role of government.

Business leaders have reacted anxiously to the language employed, though it would seem that Dr Cable's rhetoric has the full backing of the coalition government, possibly indicating a much tougher stance on financial regulation.

Measures being mooted include tax incentives, further measures to restrict bonuses and a commission chaired by the chancellor George Osborne is reviewing the possibility of separating banks' retail and investment functions to insulate the economy from future financial shocks.